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Concept9 min read

EV/EBITDA Multiple

EV/EBITDA compares a company's enterprise value to its operating cash earnings. It is the most widely used valuation multiple because it is capital-structure-neutral and approximates cash flow.

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What's inside

  • Definition
  • Why it matters
  • Formula
  • Units & benchmarks
  • Key levers
  • Where it shows up in cases
  • How it's charted
  • Worked example
  • Common traps
  • Industry nuances

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