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imported>Doug Williamson |
imported>Doug Williamson |
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| 1.
| | Global Financial Crisis. |
| A method of business valuation which is based on accounting Earnings before interest, tax, depreciation and amortisation (EBITDA) and the ratio of entity value to EBITDA of a comparable business (or a comparable group of businesses).
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| EBITDA mulitiple = Total value of firm ÷ EBITDA.
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| 2.
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| For example if the total entity value of Company A is $750m and its relevant EBITDA is $150m, the EBITDA multiple = $750m/$150m = 5 times.
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| | == See also == |
| In another case if comparable EBITDA multiples for an unlisted Company B are 6, and its relevant EBITDA is $30m, the total entity value of Company B's business can be estimated on this basis as 6 x $30m = $180m.
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| == See also ==
| | * [[Credit crunch]] |
| * [[Earnings multiples]] | |
| * [[EBITDA]]
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Revision as of 19:27, 5 September 2014
Global Financial Crisis.
See also