EBITDA Multiple Calculator Online

EBITDA Multiple

 EBITDA  Multiple Calculator

EBITDA Multiple  is simple word in enterprise value. EBITDA is equal to Enter price value divided to EBITDA.EBITDA (Earnings Before Interests, Taxes, Depreciation and Amortization) the operating profit of a compnay.

The Formula us

EBITDA Multiple = Enterprise value / EBITDA

Let us consider,

  • Enterprise is the market value of a company.

1.)Enterprise Value

Enterprise value is equal to Market capitalization added to value of debt, minority interest , preferred shares, cash and cash equivalents.

Formula us,

Enterprise value = Market capitalization + Value of debt + Minority interest + Preferred shares – Cash and cash equivalents

Example For Enterprise Value

Enterprise value = Market capitalization + Value of debt + Minority interest + Preferred shares – Cash and cash equivalents

Market value capitalization ($1000), Value of Debt ($20,000) , Minority Interest ($2000), Preferred Shares ($3000) , Cash Equivalents ($10000)

Enterprise Value = 1000 + 20,000 +  2000 + 3000 +10000

The answer is Enterprise value is 36,000$

EBITDA =40,000$

Calculate the EBITDA Multiple

EBITDA Multiple = Enterprise value / EBIT

  • enterprise value: 36,000 $
  • EBITDA: 40,000 $

EBITDA Multiple in this case will be as follows:

EBITDA Multiple = 36,000 / 40,000

The answer is EBITDA Multiple = 0.85

 

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