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Methods of Business Valuation by Their Profitability

Equilest

This multiple is similar, by analogy, to the PER (Price to Earnings Ratio of listed companies). For an explanation of the meaning of these "intermediate management balances", see the article "income statement"; As a first approach, the ENE and EBIT couples and EBITDA and EBITDA can be taken as roughly equivalent.

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M&A Terms Every Business Owner Should Know

Class VI Partner

EBITDA EBITDA refers to Earnings Before deducting Interest, Taxes, Depreciation, and Amortization costs, and is often used by buyers and sellers as a proxy for operating cash flow in a business (i.e., EBITDA Multiple EBITDA Multiple refers to the multiple of EBITDA used to determine a company’s enterprise value.