This ebitda multiple calculator takes the figures you already have and applies the relationship behind ebitda multiple calculations for you, giving enterprise value and ebitda multiple from ebitda, cash and cash equivalents, market capitalization, minority interest, preferred shares and value of debt.
What Is the EBITDA Multiple Calculator?
The ebitda multiple calculator takes ebitda, cash and cash equivalents, market capitalization, minority interest, preferred shares and value of debt and turns them into enterprise value and ebitda multiple.
It is the kind of calculation you would otherwise do on the back of an envelope: mechanical, repeatable and easy to get subtly wrong without noticing.
How the EBITDA Multiple Figure Is Built
Each result is calculated from the ones before it, so the working is fully visible. That matters when the answer is going to be quoted to somebody else and you need to be able to explain where it came from.
The figures are exactly as good as the assumptions underneath them. Check the rates, the periods and the tax treatment before you rely on the result.
Reading the Result Sensibly
A small change in an input can move the result by much more than you would expect, particularly where the calculation divides by one of the figures you supplied. That is worth understanding before you rely on a figure.
For anything that will be committed to, write the inputs down beside the result. A number you can reproduce is worth far more than one you cannot explain.
A Worked Example
Working through an example, with ebitda set to 10, cash and cash equivalents set to 5, market capitalization set to 2, the calculator returns enterprise value of 112, and ebitda multiple of 11.2. Substitute your own figures and the same steps produce the same kind of answer.
Frequently Asked Questions
What do I need to work out enterprise value?
Enter ebitda, cash and cash equivalents, market capitalization, minority interest, preferred shares and value of debt. The calculator then works through the relationship and reports enterprise value and ebitda multiple.
What does the ebitda multiple actually calculate?
It takes ebitda, cash and cash equivalents, market capitalization, minority interest, preferred shares and value of debt and converts them into enterprise value and ebitda multiple using the standard relationship for this problem. Each step is applied in turn, so every output is traceable back to the numbers you typed in.
How should I enter ebitda?
Use the value you actually have, in the unit shown next to the field. Enter every value in the same unit system. The calculator assumes the figures you supply are consistent, so it cannot correct a mistake that happens before the calculation starts.
Is the answer exact?
It is as exact as the formula and the inputs allow. The method itself is the standard one for this problem, so the only sources of error are the figures you enter and the precision you ask for.
Does anything you type get stored?
No. The whole calculation runs inside your browser, and nothing you enter is uploaded, logged or sent anywhere.