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EV/EBITDA Explained: A Key Valuation Multiple for Investors

Valutico

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., restructuring costs, significant storm damage repairs, income from an infrequent event).

EBITDA 52