Very Low<4Below Avg4-8Average8-14Premium14-20High Growth20+
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EV/EBITDA multiple: 10.0x
Enterprise value is 550 M, implying a 10.0x multiple on 55 M of EBITDA.
EV/EBITDA is most meaningful when compared to peers in the same sector and lifecycle stage, as capital intensity and growth profiles vary widely across industries.
EV/EBITDA strips out the effects of capital structure (debt) and non-cash charges, making it useful for cross-company and cross-border comparisons.
Next stepTo stress-test the valuation, try the reverse mode: enter your EBITDA and a range of market multiples to see what the business would be worth at each.