EBITDA Technical Question - IBD
LTM Revenue: $200 Million
LTM EBITDA: $50 Million
Revenue Growth: 10% per year over a three year projection
EBITDA Margin: 25% per year over a three year projection
What is the three year EBITDA?
The answer is 70 million but I don’t see how. Any help is welcome.
1st Year: Revs 220 EBITDA 55 2nd Year: Revs 242 EBITDA 60.5 3rd Year: Revs 266 EBITDA 66.5
You can do it directly multiplying EBITDA * (1.1)^3 as OG margin is also 25 and assumes it maintains the same margin each year.
Yeah it’s not 70. It’s 66.55 mm
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