InvestorWords.com
envy ratio
Definition
A calculation used after a buyout to represent how much the management company spent versus the investing company, proportional to the amount of equity each company received. Envy ratio is calculated as: (Price investor paid / Percent equity owned by investor) / ( Price management paid / Percent equity owned by management ). The envy ratio shows which group paid more per share. This term is most often used in the United Kingdom.
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