EBITDA Multiple Calculator


 why the use of this EBITDA Multiple Calculator?


With DaProfitClub,EBITDA Multiple Calculator it is possible to quickly and accurately perform  calculations. In addition, it's a no-cost application that makes it easier to conduct online analyses without needing a login or payment.

 


A formulation for an EBITDA Multiple Calculator


Two elements are needed to calculate an EBITDA Multiple Calculator:
Value of business as well as
Let's begin by taking an examination of enterprise value. In simple terminology, it's an indicator that shows the value of a company. The following formula can be used to calculate the enterprise value:

The value of the enterprise is calculated using the following formula: the cash balance and its equivalents. Capitalization of the market - value of debt Minority interest Preferred shares.

The operational profits of a company are calculated by dividing this amount by EBITDA (Earnings before Taxes, Interest, Depreciation, Taxes, and Amortization).
Let's write down the entire formula to help clarify:

Enterprise Value / EBITDA is the EBITDA Multiple .
Let's now examine an illustration. Look at a business that fits the requirements listed below:

435,00$ in enterprise value, as well as
EBITDA is $50k.

In this scenario, the definition of multiple is in the following manner:

EBITDA Multiple is equal to 435,000/50,000 or 8.7.

 

 


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