PE Interview Question: 5yr EBITDA growth rate

dr.j's picture
Rank: Monkey | banana points 35

hi all, wondering if anyone has a shortcut they can share on how to mentally calculate 5yr ebitda growth rate knowing volume and price growth rates and the company's margins. as an example, interviewer gives you 5 yr market growth, market share development, 5 yr price growth, var. cost margin and fixed cost margin for a company, then asks "what is ebitda growth over 5 yrs". been getting asked this as part of PE interview case studies quite a bit and have not found a quick and easy way to do this that does not involved a fair amount of manual math. thanks!