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EV/EBITDA Multiple Calculator

Enter market capitalisation, net debt and EBITDA to compute the enterprise value and valuation multiple.

Input Data

Market Cap
Total Debt
Cash
Ebitda

Results

Market cap + debt − cash.
12,000,000,000
EV divided by EBITDA.
6×

At a glance:EV = market cap + total debt − cash. EV/EBITDA = EV ÷ EBITDA. A lower multiple is relatively cheaper (or signals lower growth). Compare with the industry median; capital-intensive or highly-levered firms are especially well served by this over P/E.

Formula

EV = market cap + debt − cash.

EV/EBITDA = EV / EBITDA.

Lower multiple = relatively cheaper.

How to Use

  1. Enter market cap, total debt, cash and EBITDA.
  2. The tool returns EV and the EV/EBITDA multiple.

Case Studies

Market cap 10B, debt 3B, cash 1B, EBITDA 2B

EV = 10 + 3 − 1 = 12B.

EV/EBITDA = 12/2 = 6.0×.

FAQ

What EV/EBITDA counts as cheap?

It depends on the industry: telecoms/utilities often 6–9×, consumer 10–15×, tech can be higher. Below the peer median with decent fundamentals is relatively cheap.

Difference from P/E?

P/E uses equity value and net profit (affected by depreciation, interest, tax); EV/EBITDA uses the whole enterprise value and pre-depreciation operating earnings, free of capital-structure and depreciation-policy distortion, so it compares across companies better.

Why subtract cash?

When you buy a company you also receive its cash, which can immediately repay debt, so EV deducts cash to reflect the net acquisition cost.

Does EBITDA have flaws?

It ignores capital expenditure and working-capital needs, which can overstate free cash for capital-heavy firms. Pair with EV/FCF or debt/EBITDA.

Better when debt is high?

Yes. P/E is distorted when high interest depresses net profit; EV/EBITDA includes debt in EV and reflects the total acquisition cost more fairly.

Relation to the market-cap calculator?

Market cap is a component of EV. This tool further adds debt and subtracts cash to get EV, then divides by EBITDA for the operating valuation multiple.

Related Tools

References

Content review: Calculatorism Science Team. Results are for reference only; please refer to the relevant authorities for the official figures.

Found a problem with the results?

If this calculator's result is wrong, or you have any question about the calculation logic, please let us know. You are viewing:EV/EBITDA Multiple Calculator（/finance/ev-ebitda）。