EV/EBITDA Explained: A Key Valuation Multiple for Investors
Valutico
MAY 19, 2025
To determine EBITDA, you can start with a company’s net profit or its operating profit (EBIT). Leveraged Buyouts (LBOs): LBO firms, which rely heavily on debt financing, prefer companies with low EV/EBITDA multiples. One-time gains or losses: Expenses or income events that are not recurring and unusual in nature (e.g.,
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