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How EBITDA Margins Affect Revenue Multiples

Auto Dealer Valuation Insights

Whenever someone asks me what their RIA is worth as a multiple of revenue, I respond by asking about their firm’s EBITDA margin. The revenue multiple can be decomposed like this: Thinking back to your pre-algebra days, the EBITDAs on the right side of the equation cancel, such that the revenue… Source

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How Did the Pandemic Impact EBITDA Multiples in 2020? Explore a 12-Month Snapshot in the DealStats Value Index

BVR

economy for most of 2020 and causing an unprecedented economic impact on small businesses, DealStats Value Index (DVI) captured the 12-month snapshot on how earnings before interest, taxes, depreciation, and amortization (EBITDA) multiples have trended. With the COVID-19 pandemic putting a stranglehold on the U.S.

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Applying EBITDA Multiples To Your Company Valuation

Benchmark Report

For example, if a company boasts EBITDA of $1 million, and a five times EBITDA multiple is applied, the company’s estimated value is $5 million. And how do we know if the EBITDA number is even accurate? After all, EBITDA will not be the same for every business. But how do we know what multiple applies to your business?

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How To Get Value Beyond EBITDA

Benchmark Report

When selling a business, most owners focus on the bottom line, typically represented by EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). However, while EBITDA is an essential metric for valuing a business, it is not the only one that matters.

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SaaS EBITDA Margins and The Rule of 40

Lighter Capital

When “growth at any cost” was the name of the game in tech, founders could breeze by without calculating and comparing their startup’s EBITDA margin. EBITDA — earnings before interest, taxes, depreciation, and amortization — is a profitability measure that excludes costs that can obscure the true performance of a business.

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Why Does Ebitda Get Adjusted?

Benchmark Report

In the world of small to mid-market mergers and acquisitions, a number that is very important is a company’s adjusted EBITDA. The adjusted EBITDA is meant to find a company’s true normalized earnings by taking away any outside influences or ownership influences on the company’s bottom line.

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[PARAMETERS UPDATE P5.8] EBITDA MULTIPLES

Equidam

You can refer to the table below to see how the EBITDA multiples for the industries available on the Equidam platform will change on February 29th, 2024. Industry EBITDA Multiple Old New Var % Advanced Medical Equipment & Technology 20.99 EBITDA MULTIPLES appeared first on Equidam. Aswath Damodaran of New York University.

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