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EV / EBITDA Multiple: EBTIDA Quantification
[Násobek EV / EBITDA: praktické poznámky k aplikaci]

Author

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  • Lukáš Hruboň

Abstract

This article analyses selected factors affecting EBITDA margins with focus on effects of: (i) outsourcing, (ii) rentals and leases utilization, (iii) specific accounting policies, (iv) transactions with related parties. Further, the author warns against "blind" application of the uniform sectorial EV / EBITDA multiple on each company fulfilling the same service provided / customer base criteria. A valuation expert attempting the market approach shall maximally double-check consistency between the valued company and its sectorial "peers" in: a) accounting policies affecting P&L and EBITDA calculation formula, b) application of the same fiscal year basis in the multiple's computation, c) growth potential, risk profile and investment requirements of each of the companies in question.

Suggested Citation

  • Lukáš Hruboň, 2021. "EV / EBITDA Multiple: EBTIDA Quantification [Násobek EV / EBITDA: praktické poznámky k aplikaci]," Oceňování, Prague University of Economics and Business, vol. 14(4), pages 3-17.
    • Handle: RePEc:prg:jnloce:v:14:y:2021:i:4:id:2021_4_01:p:3-17
    DOI: 10.18267/j.ocenovani.267
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    More about this item

    Keywords

    Market based valuation; EV / EBITDA multiple; EBITDA margin; IFRS16; Tržně srovnávací metoda; násobek EV / EBITDA; marže EBITDA; IFRS 16;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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