Series 79 practice questionmediumEV/EBITDA Calculations
Company X has an enterprise value of $1.5 billion and an EBITDA of $250 million. What is its EV/EBITDA multiple?
- A6.0x✓ Correct answer
- B4.0x
- C7.5x
- D5.0x
Explanation
Why A — 6.0x
EV/EBITDA is $1,500M/$250M = 6.0x. 4.0x and 5.0x result from miscalculation, and 7.5x would be if EBITDA were lower.
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