Which calculation is primarily used to determine a company's value during an acquisition?

The enterprise value to EBITDA ratio is a crucial metric for assessing a company's value during an acquisition because it provides a standardized way to evaluate and compare the financial performance of firms across different industries. This ratio gives potential acquirers a clear view of the company’s overall value relative to its earnings before interest, taxes, depreciation, and amortization. Using EBITDA normalizes the earnings by excluding non-operating expenses and non-cash items, allowing for a more accurate price reflection based on the operating performance.

Additionally, this ratio aids in understanding how a company is valued compared to others in similar sectors, making it a vital tool for investors and analysts during the valuation process. It encapsulates both debt and equity, which is critical when considering the total value an acquirer would take on.

In contrast, other options like revenue turnover and net income focus on narrower aspects of financial performance and do not provide as holistic a view of company value. Asset valuation, while important in certain contexts, does not capture the overall operational effectiveness or the market’s perception of a company's future cash flows, which are critical during acquisitions.