# EBITDA Multiple Calculator

If you want to determine a company's value, then EBITDA Multiple Calculator is a tool you can use.

In finance, **EBITDA multiple**, also known as **enterprise multiple**, is used to **measure a company's value**. The vital section included in it is the company's debt, So it gave you great assistance in determining the company's entire business achievements/performance.

Moreover, After calculating the EBITDA multiple, you can easily decide the company's current value ( whether it is undervalued or overvalued). For potential stockholders, it is a significant ratio.

Usually, in finance value of an EBITDA multiple below 10 is considered healthy.

**Table of Contents**

## Formula of EBITDA Multiple Calculator

To determine enterprise multiple instantly, you can use our EBITDA multiple calculators; Or to find it manually, you can use the formula listed below:

EBITDA Multiple = Enterprise value / EBITDA

**Whereas,**

Enterprise value is used to measure the company's market value. To calculate it, you can use the formula listed below:

EBITDA is the Earnings before Interest, Taxes, Depreciation, and Amortization. You can find it by using our EBITDA calculator.

**Note:**

Read about Coulomb's law and our Coulomb's Law Calculator.

### Example

For a more precise understanding of the concept of EBITDA multiple, you can use the formula listed below:

Suppose an ABC company has an enterprise value of $435,000 and an EBITDA value of $50,000 then fid the company's EBITDA multiple.

**Given data**

EBITDA = $50,000

Enterprise value= $435,000

**To Find**

Company's EBITDA multiple = ?

**Solution**

We will solve this problem using the formula listed above.

EBITDA Multiple = Enterprise value / EBITDA

Putting the values, in the above equation we have

EBITDA Multiple = $435,000 / $50,000

EBITDA Multiple = 8.7

The EBITDA Multiple of ABC Company is **8.7**.

### How to use the EBITDA Multiple Calculator?

The steps to use the EBITDA multiple calculators are as follows:

**Step 1: **Enter the value of the enterprise in the first required input.

**Step 2: **Enter the value of EBITDA in the second required input.

**Step 3: **The calculator will automatically display an answer on the screen.

### Calculator use

To find the company's value, you can use our EBITDA, multiple calculators. Just enter the required values, and it will display the answer on the screen.