EBITDA Multiple Calculator
Calculate enterprise value multiples and analyze company valuation relative to industry benchmarks
Calculate EBITDA Multiple
Enterprise Value Components
Total market value of outstanding shares
Short-term + long-term debt
Non-controlling interests in subsidiaries
Value of preferred equity
Liquid assets (subtracted from enterprise value)
EBITDA
Trailing twelve months EBITDA
Select industry for benchmark comparison
EBITDA Multiple Analysis
Multiple Analysis
Example Calculation
Company Data
Market Cap: $400M
Total Debt: $50M
Cash: $15M
EBITDA: $50M
Calculation Steps
1. Enterprise Value: $400M + $50M - $15M = $435M
2. EBITDA Multiple: $435M ÷ $50M = 8.7x
Company valued at 8.7 times EBITDA
Industry Context
Technology avg: 15.5x (premium)
Healthcare avg: 11.3x (above avg)
Utilities avg: 6.8x (below avg)
Compare to relevant industry benchmark
Industry Benchmarks
Valuation Analysis Tips
Compare multiples within the same industry
Consider company size and growth prospects
Use TTM EBITDA for accuracy
Account for one-time items in EBITDA
High multiples may indicate overvaluation
Consider debt levels and capital structure
Understanding EBITDA Multiple Analysis
What is EBITDA Multiple?
EBITDA Multiple (also called Enterprise Multiple) is a valuation ratio that compares a company's enterprise value to its EBITDA. It's widely used in M&A transactions and investment analysis because it accounts for capital structure differences between companies.
Why EBITDA Multiple Matters
- •Compares companies regardless of capital structure
- •Excludes non-operational factors
- •Widely used in M&A valuation
- •Industry benchmark comparison
Calculation Components
Enterprise Value =
Market Cap + Debt + Minority Interest + Preferred Shares - Cash
EBITDA Multiple =
Enterprise Value ÷ EBITDA
- Enterprise Value: Total company value including debt
- EBITDA: Operating cash flow proxy
- Multiple: How many times EBITDA equals enterprise value
Example: $435M enterprise value ÷ $50M EBITDA = 8.7x multiple
Industry Variations
- 🚀High Growth: Technology (15.5x), Finance (12.1x)
- 📊Moderate: Healthcare (11.3x), Industrials (8.9x)
- 🏭Capital Intensive: Utilities (6.8x), Energy (6.5x)
Valuation Signals
- 📉Low Multiple: Undervalued or distressed
- ⚖️Industry Average: Fair valuation
- 📈High Multiple: Growth premium or overvalued
Key Considerations
- ⚠️EBITDA Quality: Exclude one-time items
- 📅Time Period: Use TTM for accuracy
- 🔍Peer Comparison: Similar size and market