EV/EBITDA Multiple Calculator — Enterprise Valuation
Divide Enterprise Value by EBITDA to get the EV/EBITDA multiple — the most common metric for comparing company valuations across industries. Enter EV and EBITDA to see the current multiple, then compare it to implied enterprise values at standard acquisition benchmarks.
Enterprise value expressed as a multiple of annual EBITDA
- 1
Enterprise Value
6,800,000 - 2
EBITDA
850,000 - 3
EV / EBITDA Multiple
6,800,000 ÷ 850,000 = 8Enterprise value expressed as a multiple of annual EBITDA.
How does this calculator work?
EV/EBITDA = Enterprise Value ÷ EBITDA. A lower multiple may signal undervaluation vs peers; higher reflects growth premiums or scarcity. Typical M&A ranges: 6–10× for mature industries, 12–25× for high-growth tech/healthcare. Always compare to sector peers and specify whether EBITDA is trailing or forward.
Formula
How this is calculated
The EV/EBITDA multiple (also called the "enterprise multiple") is the ratio of a company's total enterprise value to its EBITDA. Enterprise value equals market capitalisation plus net debt (total debt minus cash and cash equivalents), capturing what an acquirer would effectively pay to own the business outright. Dividing by EBITDA strips out capital-structure and accounting differences, making cross-company comparisons more meaningful than price-to-earnings ratios alone.
The multiple is widely used in M&A, private equity, and equity research. Lower multiples may indicate undervaluation relative to peers; higher multiples may reflect strong growth expectations, market leadership, or a scarce asset. Typical ranges vary substantially by sector and economic cycle — technology and healthcare companies often trade at 15–25×, mature industrial or consumer companies at 6–12×, and distressed businesses below 5×. All benchmarks shown are reference points for 2024–2025 and are subject to change; you can compute the implied EV for any target multiple directly in the formula.
Key considerations: use TTM EBITDA for historical multiples and forward EBITDA (next 12 months consensus estimate) for forward multiples — both are common but must be stated clearly when communicating the metric. Negative EBITDA makes the multiple meaningless.
Frequently asked questions
Private equity acquisitions of medium-sized businesses have historically averaged 8–12× EBITDA, though the range is wide. Strategic acquirers may pay higher multiples for synergies; distressed sellers may accept lower. Publicly traded companies in the same sector provide the most relevant peer benchmarks.
P/E uses equity market cap and after-tax earnings, so it is distorted by leverage (high-debt companies have lower earnings), tax rates, and non-cash charges like D&A. EV/EBITDA uses total enterprise value and strips out those effects, making it better for comparing companies with different capital structures or accounting policies.
Enterprise Value = Market capitalisation + Total debt + Preferred equity + Minority interest − Cash and cash equivalents. For private companies, market cap is replaced with estimated equity value. Net debt (debt minus cash) is the most common shorthand for the adjustment.
TG we-Calculate Editorial Team. (2026). EV/EBITDA Multiple Calculator — Enterprise Valuation [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/ebitda-multiple-calculator
TG we-Calculate Editorial Team. "EV/EBITDA Multiple Calculator — Enterprise Valuation." TG we-Calculate. 2026. https://we-calculate.com/calculator/ebitda-multiple-calculator.
TG we-Calculate Editorial Team, "EV/EBITDA Multiple Calculator — Enterprise Valuation," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/ebitda-multiple-calculator
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