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EV/EBITDA Explained: A Key Valuation Multiple for Investors

Valutico

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. How to Calculate EBITDA? They are typically featured as operating expenses on the income statement.

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