EV/EBITDA Calculator
Free EV/EBITDA valuation calculator for public comps, precedent transaction checks, and quick enterprise value to equity value bridges.
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Implied valuation
Peer average of 7.9x implies $587.5M of equity value.
Visible formulas
- Enterprise value = EBITDA × EV/EBITDA multiple
- Equity value = Enterprise value - net debt - minority interest - preferred stock
- Implied share price = Equity value / shares outstanding
EV/EBITDA sensitivity table
| Multiple | Enterprise value | Equity value | Implied share price |
|---|---|---|---|
| 6.0x | $600.0M | $400.0M | $8.00 |
| 7.0x | $700.0M | $500.0M | $10.00 |
| 8.0x | $800.0M | $600.0M | $12.00 |
| 9.0x | $900.0M | $700.0M | $14.00 |
| 10.0x | $1.00B | $800.0M | $16.00 |
How to use EV/EBITDA in valuation
EV/EBITDA is most useful as a relative valuation check. Compare the selected company against peers with similar growth, margins, capital intensity, geography, and accounting policies.
1Pick the EBITDA basis
Use LTM EBITDA for current trading value, NTM EBITDA for forward market comps, or normalized EBITDA when one-off items distort earnings.
2Bridge from enterprise value to equity value
Debt-like claims reduce common equity value. Cash-like assets increase it, which is why net cash should be entered as negative net debt.
3Cross-check with other methods
Use EV/EBITDA alongside DCF, revenue multiples, and precedent transactions. Multiples are fast, but they still depend on judgment.
Need a fuller valuation model?
Use this calculator for a quick comp check, then move to full forecast and DCF work when assumptions matter.
Alex Tapio
Founder of Finamodel • Professional Financial Modeller • Ex-Deloitte
Frequently asked questions
EV/EBITDA compares enterprise value to earnings before interest, taxes, depreciation, and amortization. It is a common valuation multiple because it focuses on operating earnings before capital structure differences.
Start with enterprise value, subtract net debt, minority interest, and preferred stock. If the company has net cash, enter net debt as a negative number to add cash back to equity value.
Use comparable public companies, precedent transactions, and the company’s own trading history. Faster-growing, higher-margin, lower-risk businesses usually deserve higher multiples.
The multiple can be mathematically negative when EBITDA is negative, but it is usually not meaningful. For loss-making companies, revenue multiples or DCF analysis are often more useful.
Keep modeling
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Use these next-step tools and Excel templates to turn the quick calculation into a more complete finance workflow.