EBITDA Multiple Template
This EBITDA multiple template helps you find out the EBITDA multiple given the line items for determining the enterprise value.
This is what the EBITDA multiple template looks like:
Download the Free Template
Enter your name and email in the form below and download the free template now!
The EBITDA multiple is a financial ratio that compares a company’s Enterprise Value to its annual EBITDA (which can be either a historical figure or a forecast/estimate). This multiple is used to determine the value of a company and compare it to the value of other, similar businesses.
A company’s EBITDA multiple provides a normalized ratio for differences in capital structure, taxation, fixed assets, and for comparing disparities of operations in various companies. The ratio takes a company’s enterprise value (which represents market capitalizationMarket CapitalizationMarket Capitalization (Market Cap) is the most recent market value of a company’s outstanding shares. Market Cap is equal to the current share price multiplied by the number of shares outstanding. The investing community often uses the market capitalization value to rank companies plus net debt) and compares it to the Earnings Before InterestInterest ExpenseInterest expense arises out of a company that finances through debt or capital leases. Interest is found in the income statement, but can also be calculated through the debt schedule. The schedule should outline all the major pieces of debt a company has on its balance sheet, and calculate interest by multiplying the, TaxesTax ShieldA Tax Shield is an allowable deduction from taxable income that results in a reduction of taxes owed. The value of these shields depends on the effective tax rate for the corporation or individual. Common expenses that are deductible include depreciation, amortization, mortgage payments and interest expense, Depreciation, and Amortization (EBITDA) for a given period.
The formula for calculating EBITDA multiple is: EBITDA Multiple = Enterprise Value / EBITDA
To Determine the Enterprise Value and EBITDA:
- Enterprise Value = (market capitalization + value of debt + minority interest + preferred shares) – (cash and cash equivalents)
- EBITDA = Earnings Before Tax + Interest + Depreciation + Amortization
More Free Templates
For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation and Word document templates.
- Excel Modeling TemplatesExcel & Financial Model TemplatesDownload free financial model templates - CFI's spreadsheet library includes a 3 statement financial model template, DCF model, debt schedule, depreciation schedule, capital expenditures, interest, budgets, expenses, forecasting, charts, graphs, timetables, valuation, comparable company analysis, more Excel templates
- PowerPoint Presentation Templates
- Transaction Document TemplatesTransactionsDownload free transaction templates including a Letter of Intent (LOI), Term Sheet, Non-Disclosure Agreement (NDA), Confidential Information Memorandum (CIM), Equity Capital Markets (ECM) memo, Due Diligence checklist, and other types of corporate transactions. Download the Word Document files for your own use
