What this calculator does
EV/EBITDA multiple works out prices a company against its cash operating profit, independent of capital structure. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaEV = Market cap + Debt − Cash; EV/EBITDA = EV / EBITDA; Implied equity value at a target multiple = Target × EBITDA − Debt + Cash
The inputs explained
| Field | What to enter |
|---|---|
| Market capitalisation ($) | A number, measured in your currency. Starts at 5000000. |
| Total debt ($) | A number, measured in your currency. Starts at 1200000. |
| Cash & equivalents ($) | A number, measured in your currency. Starts at 400000. |
| EBITDA ($) | A number, measured in your currency. Starts at 900000. |
| Peer / target multiple | A number. Starts at 8. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with market capitalisation
Every other input is held at the calculator’s starting values while market capitalisation varies. Select any row to load that scenario into the calculator.
How the answer changes with market capitalisation
| Market capitalisation ($) | EV/EBITDA multiple | Enterprise value | Implied equity value at a 8.00× multiple |
|---|---|---|---|
| 2,500,000 | 3.67× | $3,300,000.00 | $6,400,000.00 |
| 3,750,000 | 5.06× | $4,550,000.00 | $6,400,000.00 |
| 5,000,000 | 6.44× | $5,800,000.00 | $6,400,000.00 |
| 7,500,000 | 9.22× | $8,300,000.00 | $6,400,000.00 |
| 10,000,000 | 12.00× | $10,800,000.00 | $6,400,000.00 |
| 15,000,000 | 17.56× | $15,800,000.00 | $6,400,000.00 |