article thumbnail

EV/EBITDA Explained: A Key Valuation Multiple for Investors

Valutico

EV/EBITDA is a widely used multiple in this relative valuation approach. What is EV/EBITDA? Investors and analysts widely utilize the EV/EBITDA multiple as a key valuation metric. The multiple is calculated as Enterprise Value (EV) divided by EBITDA. Breaking down the multiple What is EBITDA?

EBITDA 52
article thumbnail

What’s Next for US M&A

Harvard Corporate Governance

Rates and financing costs to increase. The increasing interest rate environment has, and will inevitably continue, to make deal financing more costly as spreads widen. Leveraged loans and high-yield bonds are at the riskier end of the curve, and PE firms rely heavily on this financing.

Finance 247
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

The Corporate Life Cycle: Corporate Finance, Valuation and Investing Implications!

Musings on Markets

In fact, the business life cycle has become an integral part of the corporate finance, valuation and investing classes that I teach, and in many of the posts that I have written on this blog. In 2022, I decided that I had hit critical mass, in terms of corporate life cycle content, and that the material could be organized as a book.

article thumbnail

Consulting Firm Valuation Multiples

Peak Business Valuation

Accurate consulting firm valuation multiples are also insightful when buying, selling, or securing financing for a consulting firm. The multiple estimates a firm’s value based on industry metrics, such as SDE, EBITDA, or revenue. Within the market approach, multiples value a firm according to its SDE, EBITDA, and revenue.

EBITDA 52
article thumbnail

Does Impairment Affect EBITDA? An In-Depth Analysis

RNC

Understanding how impairment charges influence EBITDA can provide insights into a company’s financial health in financial analysis. This blog dives deep into the question: How does impairment impact EBITDA? Understanding EBITDA Calculation EBITDA stands for ‘Earnings before Interest, Taxes, Depreciation, and Amortization’.

EBITDA 52
article thumbnail

The Credit Analyst Career Path: How to Get Into Finance Through the Side Door

Brian DeChesare

The commonality is that they can be useful side doors into the finance industry, especially if you got started late , earned lower grades , or did not complete enough internships : What is a “Credit Analyst”? And if you’re in a more specialized role, such as structured finance or real estate lending , you might also be a credit analyst.

Finance 95
article thumbnail

Textile Mill Valuation Multiples

Peak Business Valuation

Textile mill valuation multiples are often based on seller’s discretionary earnings (SDE), EBITDA, and revenue. Common Textile Mill Valuation Multiples SDE, EBITDA, and revenue multiples are common when valuing a textile mill. As such, Peak Business Valuation favors cash flow-based multiples like SDE and EBITDA.

EBITDA 52