EBITDA multiples are largely determined by a combination of precedent transaction analysis, examining current market trends and other valuation methodologies.

In evaluating the estimated value of a company, many experts will use a multiple of the earnings of the company before interest, taxes, depreciation and amortization (EBITDA) and then add cash and ...

Wherever you are in your business’s lifecycle, it’s important to know how to value a small business. Many, or all, of the products featured on this page are from our advertising partners who ...

How to Use EBITDA to Value Your Company It's not the only number potential buyers look at, but EBITDA will give you a solid idea of how they'll start evaluating your business.

What Is EBITDA? Earnings before interest, taxes, depreciation and amortization (EBITDA) is a business analysis metric. Learn how to analyze your company's financial health with EBITDA.

We’ll explain what EBITDA is, how it’s calculated, and the advantages and disadvantages of using it to work out profitability in investing.

Shareholders of private companies have to use a variety of methods to determine the approximate value of their shares.

There’s no question that EBITDA is helpful in offering better insight into a company’s finances. Still, it’s imperative to remember that this metric must always be taken with a grain of salt.

Valuing the company using metrics like EBITDA is silly and typically happens during bull markets or by analysts when there is no net income to speak of.

Since EBITDA is derived from earnings, the two numbers are related, but can serve different purposes when evaluating profitability and the value of a company.

Learn how enterprise value can help investors compare companies with different capital structures.