Value a business from EBITDA using a market multiple, or compute the multiple.
Please do not make financial decisions based on these results.
What is the EBITDA Multiple Calculator?
Value a business from EBITDA using a market multiple, or compute the multiple. To use the EBITDA Multiple Calculator, enter ebitda, multiple, known enterprise value; it returns enterprise value, implied multiple of known ev, and shows them instantly as you type.
Where the EBITDA Multiple Calculator fits
Value a business from EBITDA using a market multiple, or compute the multiple. The main figure it returns is the Enterprise value, worked out from the values you enter.
It belongs with the other stocks & equity analysis tools. If you are comparing options or checking a result from another angle, try the Enterprise Value Calculator, Free Float Calculator or the Market Capitalization Calculator.
How to use the EBITDA Multiple Calculator
- Fill in the fields. You will need EBITDA ($), Multiple, Known enterprise value ($). Take price and share figures from the latest filing or quote. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Enterprise value, and the cards below show Implied multiple of known EV. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the EBITDA Multiple Calculator using the default values shown in the calculator above:
Inputs
| EBITDA ($) | 2,500,000 |
|---|---|
| Multiple | 8 |
| Known enterprise value ($) | 22,000,000 |
Results
| Enterprise value | $20,000,000.00 |
|---|---|
| Implied multiple of known EV | 8.8× |
With these inputs the calculator returns Enterprise value: $20,000,000.00. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising EBITDA ($) from 2,500,000 to 3,000,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Enterprise value | $20,000,000.00 | $24,000,000.00 | +20% |
| Implied multiple of known EV | 8.8× | 7.33× | -16.7% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the EBITDA Multiple Calculator reports Enterprise value and implied multiple of known ev. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What multiple is typical?
It varies by sector; mature industries often trade at 6x to 12x EBITDA.
Where do I find the inputs?
Company filings (10-K and 10-Q), investor relations pages and your broker show earnings, equity, debt and share counts.
Which valuation ratio should I trust?
No single ratio is enough. Compare several multiples with the company’s own history and its industry peers.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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