EBITDA Multiple Calculator

What is an EBITDA multiple?

An EBITDA multiple is a popular method of a company valuation. By analyzing the EBITDA multiple, an investor can investigate if a company's shares are worth their price. 

Although there are many different metrics for evaluating how much a company is worth. EBITDA multiple has its advocates.

In order to understand this metric, essential knowledge about the EBITDA indicator is required. For more details, visit our EBITDA calculator.

How to calculate the EBITDA multiple?

The formula for calculating the EBITDA multiple is a ratio of enterprise value to its EBITDA. It represents how many years of net income investors need to pay to obtain the company.

EBITDA Multiple = Company’s value / EBITDA

A company's value is calculated according to its market capitalization, minority interest, preferred shares value, and, as opposed to other methods, the value of the company's debt. In the end, the current cash and cash equivalents are subtracted from the value. 

Company value = Capitalization + Debt + Minority interest + Preferred shares - Cash and cash equivalents

Similar tools

You can find more helpful calculators on Calcopolis. If you wish to dive deep into the topic, visit our EBIT calculator and EBITDA margin calculator.

For alternative company valuation techniques, check out Enterprise Value Calculator.

Autorzy

Narzędzie stworzone przez Lucas Krysiak w dniu 2022-05-04 13:48:32 | Ostatnio sprawdzone przez Mike Kozminsky w dniu 2022-10-14 15:35:48