BizJourney
Home › Formulas › Enterprise value multiple

How to calculate Enterprise value multiple

The Enterprise value multiple formula, with plain worked examples you can check yourself.

Enterprise value multiple = Enterprise value ÷ EBITDA

The result is a number in ×.

Worked examples

Enterprise value = 2500 · EBITDA = 500Enterprise value multiple = 5×
Enterprise value = 4800 · EBITDA = 400Enterprise value multiple = 12×
Enterprise value = 5000 · EBITDA = 500Enterprise value multiple = 10×

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

Practice Enterprise value multiple with real numbers

Quizzes, a CEO simulator, a real estate tycoon game and startup tools. Free to start, in 7 languages.

Play BizJourney free →