Hi all, Hope you can help me with a brief question: How would you best illustrate the translation of an EBITDA multiple to a PE multiple accounting for D&A, Tax, and interest vs net debt? Any examples available? Could you do a bridge to show it?

i don't get ur question. PE IS a multiple : share price as multiple of earnings EBITDA is the denominator for a variety of multiples : EV/EBITDA, REV/EBITDA, interest expense / Ebitda... IF there was no D&A,Tax and debt then Earnings would be equal to ebitda and in this very particular case Net debt ~~ debt - cash = 0 and EV = Market value of equity so EV=MV_equity and EV/EBITDA = P/E so in more literary terms, EV/EBITDA is equivalent to PE when the firm is unlevered, has no capex and there are no market frictions ( taxes)

Translation of EV/EBITDA multiple to a P/E multiple for private company

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Translation of EV/EBITDA multiple to a P/E multiple for private company

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