Free · Equity investment calculators 📈

Enterprise Value to EBITDA Multiple Calculator

Compare enterprise value with EBITDA and optionally build the enterprise-value numerator.

  • Formula & worked example
  • Private in your browser
  • No signup
Go to tool

Calculator inputs

Loading calculator…

How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Market capitalization of 1,000, debt of 200, minority interest of 50 and preferred shares of 50, less cash of 100, give enterprise value of 1,200. EBITDA of 150 produces an EV/EBITDA multiple of 8.

EV = market capitalization + debt + minority interest + preferred shares − cash; multiple = EV ÷ EBITDA

Worked example

Enter these known values and leave the other values blank.

Market capitalization
1000 USD
Value of debt
200 USD
Minority interest
50 USD
Preferred shares
50 USD
Cash and cash equivalents
100 USD
EBITDA
150 USD
Enterprise value
1200 USD
EBITDA multiple
8

Assumptions and limitations

  • Label the earnings period and adjustment basis. Differences in lease accounting, one-off adjustments and consolidation can affect comparability. EBITDA is not cash flow, and a zero or negative denominator limits conventional multiple analysis.
  • Use consistent units, dates and financial definitions. The calculated result follows the stated assumptions and the amounts entered.

Common questions

Can trailing and forecast EBITDA be compared directly?

Label the earnings period and adjustment basis. Differences in lease accounting, one-off adjustments and consolidation can affect comparability. EBITDA is not cash flow, and a zero or negative denominator limits conventional multiple analysis.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

Explore equity investment calculators 📈 or browse all finance calculators.