Valuation methods & enterprise value · Core

EBITDA multiple

Also called: EV/EBITDA

ELI5

Enterprise value divided by EBITDA under stated definitions.

Used in conversation

“The number is useful only if everyone calculates eBITDA multiple the same way.”

Pitch context

You will see “EBITDA multiple” in financial models, budgets, board packs and investor materials when the discussion reaches valuation methods & enterprise value.

Why it matters: In valuation methods & enterprise value, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 5

Direct term-level sources and supporting source families.