EBITDA multiple and GFC: Difference between pages

Revision as of 08:27, 5 June 2018

1.

Global Financial Crisis.

In this context, GFC usually refers to the global financial crisis starting in 2007/8, following the perturbances in the US property markets in 2006.

2.

Group Financial Controller.

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 .
-A method of entity business valuation which is based on:
+Global Financial Crisis.
-(i) Accounting Earnings before interest, tax, depreciation and amortisation (EBITDA) and
+In this context, GFC usually refers to the global financial crisis starting in 2007/8, following the perturbances in the US property markets in 2006.
-(ii) The ratio of entity value to EBITDA of a comparable business (or a comparable group of businesses).
-EBITDA multiple = Total value of firm ÷ EBITDA.
 .
-For example, the total entity value of Company A is $750m and its relevant EBITDA is $150m.
+Group Financial Controller.
-Company A's EBITDA multiple:
-= $750m/$150m
-= 5 times.
-.
-The EBITDA multiple can also be used as a very simple comparison or estimation model, for corporate valuation.
-In another case, say 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:
-x $30m
-= $180m.
-==See also==
+== See also ==
-* [[Earnings multiples]]
+* [[Credit crunch]]
-* [[EBITDA]]
+* [[FC]]
-* [[Price to earnings ratio]]
+* [[Financial Controller]]
+* [[Great Depression]]