EV to EBITDA Calculator
Calculate the EV/EBITDA valuation multiple from enterprise value and EBITDA.
How to Use the EV to EBITDA Calculator
Enter enterprise value and EBITDA for the same company and period. The calculator divides EV by EBITDA to estimate the enterprise multiple.
Practical Example
If enterprise value is USD 120 million and EBITDA is USD 15 million, EV/EBITDA is 8.0x.
Factors That Affect the Multiple
Growth expectations, margins, leverage, industry, interest rates, accounting adjustments and market sentiment can all influence valuation multiples.
Frequently Asked Questions
What does a lower EV/EBITDA mean?
It can indicate a lower valuation relative to EBITDA, though quality and growth differences must be considered.
Why use enterprise value?
Enterprise value incorporates debt and cash, making comparisons less dependent on capital structure.
Can negative EBITDA be used?
A negative EBITDA makes the multiple difficult to interpret.
Interpreting EV/EBITDA
EV/EBITDA compares enterprise value with an operating earnings proxy before interest, taxes, depreciation and amortization. Capital intensity, leases, accounting choices, cyclicality and unusual earnings can reduce comparability, so the multiple is usually considered alongside other measures.