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.
