How to calculate EV/EBITDA for the next fiscal year?

I am studying the comparable analysis. The fiscal year ended Dec 31.

Now I know EV/EBITDA (LTM-10/01/2017) = Enterprise Value / LTM 2017 Sales = $ 1,500 million / $ 1,415 million = 1.1x.

  1. How can I calculate the EV/EBITDA (NFY - 2017E)? How can I know the [2017E EBITDA]?
  2. How can I calculate the EV/EBITDA (NFY+1 - 2018E)? How can I know the [2018E EBITDA]?
  3. What does the "E" of "2017E" means here?

Thank you!!!

 
Best Response

First off the LTM EV/EBITDA should be EV/LTM EBITDA not sales

1 and 2) You would need to have projections for the 2017 EBITDA and 2018 EBITDA. Normally you would find this in equity research reports or an a platform like Factset or Capital IQ. If you don't have access to any of those things, you can try and look for guidance from management in investor presentations or earnings calls.

3) The E means expected or estimated.

 

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