The enterprise multiple, also known as the EV-to-EBITDA multiple, is a ratio used to determine the value of a company.
Calculated by dividing the enterprise value by EBITDA.
The corporate multiplier takes into account a company’s debt and cash levels in addition to its stock price, and relates this value to the firm’s cash profitability.
Corporate multiples may vary by industry.
Higher corporate multiples are expected in high-growth industries and lower corporate multiples in slow-growth industries.