EV/EBITDA is a stock valuation multiple that compares a company's Enterprise Value to its Earnings Before Interest, Taxes, Depreciation, and Amortization. It is widely used in relative stock valuation and as an exit multiple in DCF terminal value calculations.
A company with an EV of $5B and EBITDA of $500M trades at 10x EV/EBITDA. Industry medians vary: technology companies often trade at 15–25x, while utilities trade at 8–12x. These benchmarks inform exit multiple selection in stock valuation.
EV/EBITDA is capital-structure-neutral and removes accounting distortions from depreciation and amortization, making it more comparable across companies than P/E in many stock valuation scenarios. It is the most commonly used exit multiple in leveraged buyout and M&A valuation.
MiniValuator supports EV/EBITDA as one of the exit multiple options for computing terminal value in DCF stock valuation. Users can benchmark against industry medians to select an appropriate multiple.
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