Valutico

MAY 19, 2025

The core idea behind relative valuation is to estimate a company’s value by comparing it to similar companies based on how the market prices their financial metrics. EV/EBITDA is a widely used multiple in this relative valuation approach. What is EV/EBITDA? Breaking down the multiple What is EBITDA?

EBITDA 52

EBITDA Enterprise Value Capital Structure EBIT 52

Andrew Stolz

APRIL 3, 2020

The LBO ratios can go to 90% of debt and 10% of equity. A private equity firm aims a target return of around 20 – 25% (WallStreetMojo, 2018). The concept of an LBO transaction is simple – private equity buys a company, fixes it up, repays its debt and then sells the company for a higher price to earn the profit.

Private Equity Firm 52

Private Equity Firm EBITDA Equity Finance 52

Valutico

MAY 6, 2024

These ratios, like the EBITDA multiple, compare a company’s financial performance (EBITDA, revenue, etc.) Analysts use financial metrics and multiples such as Price to Earnings (P/E), Enterprise Value to EBITDA (EV/EBITDA), and Price to Book (P/B) ratios and apply them to the target company’s financials.

Discounted Cash Flow 52

Discounted Cash Flow Precedent Transaction Analysis Weighted Average Cost of Capital Comparable Company Analysis 52

Class VI Partner

JULY 28, 2021

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.

Book Value 52

Book Value Equity Enterprise Value Fair Market Value 52