1. Search Results

  2. Why are EBITDA Multiples Different for Similar Companies?

    Interview question I got--Why would two similar companies, same industry, same growth prospects have different ebitda multiples? What about different P/E multiples? P/E or EV / EBITDA Multiples for Similar Companies When looking at two companies in the sa ...

    28 comments - 2 silver bananas - Mar 29 2018 - 3:56pm -

  3. EBITDA vs. Operating Cash Flow vs. Free Cash Flow

    Moderator note (Andy): this is a post from 2010 but squawkbox suggested its relevancy remains and can be very useful for those going through FT & SA interviews. "Don't beat it to hell because it's missing some small details, but it' ...

    69 comments - 35 silver bananas - Feb 13 2018 - 7:21pm -

  4. Why is EBITDA popular?

    Hey guys I am just a little confused why EBITDA is used so much? I understand it may be appropriate to ignore depreciation charges when valuing certain companies but why would you ignore interest and tax payments? These charges are real cash outflows that ...

    76 comments - 0 silver bananas - Oct 10 2016 - 4:43pm -

  5. EBITDA Ambiguity- if EBITDA excludes Depreciation and Amortization, why do we subtract D and A from it to get EBIT?

    I dont really get EBITDA. It is earnings before all that so I assumed that it contained D and A. but if it excludes D and A, how can we subtract D and A to get Ebit? Wouldnt that be subtracting a non existent thing? Thanks! ebitda ...

    98 comments - 0 silver bananas - Aug 18 2016 - 1:19pm -

  6. How Do You Pronounce EBITDA?

    Fairly simple exercise here: How do YOU pronounce EBITDA, phonetically? I'm partial to "e-bit-dah" with a an emphasis on the "E" and "dah" being pronounced almost like the Russian word. How Do You Say EBITDA? Consensus a ...

    28 comments - 1 silver bananas - Jan 10 2018 - 12:18am -

  7. EV/EBITDA vs EV/EBIT vs EV/(EBITDA-capex)? Please help?

    Hi guys, Could someone please help explain the difference of when to use EV /EBIT vs EV /(EBITDA-capex)? I know you generally use EV /EBIT for companies with high capex, why though? Because of the high D&A, but don't you want to account for that? ...

    31 comments - 0 silver bananas - Feb 18 2018 - 5:03pm -

  8. Which Taxes Should I Add Back to EBITDA?

    Noob intern here arguing with other noob interns. So us noobs understand that you simply add interest, taxes, depr. and amor. back to net income to get EBITDA. However, we're looking at a company's income statement and there's income tax al ...

    18 comments - 0 silver bananas - Apr 12 2019 - 3:03pm -

  9. EBITDA Exit Multiple

    How exactly do you determine an appropriate EBITDA exit multiple for a given firm. Obviously you look at comps, but where exactly does one derive the exit multiple from? ebitda ...

    32 comments - 0 silver bananas - Oct 10 2016 - 4:40pm -

  10. How do PE Firms Create Value Beyond Margin Improvement and EBITDA Growth?

    Hello, Could anybody perhaps offer insight on some of the more nuanced tricks private equity firms use to create value in their portfolio companies? For instance, do they sell all real estate and lease instead, try to reduce underfunded pensions in some w ...

    14 comments - 1 silver bananas - Apr 16 2017 - 3:50pm -

  11. Depreciation in COGS and EBITDA

    I am working on the factory financial model. Therefore, depreciation costs of the Plant and Equipment are included in COGS, as these fixed assets are used in the direct production of the inventory. My question is- as far as the company owns only assets th ...

    13 comments - 1 silver bananas - Jan 11 2018 - 5:47pm -

  12. question about ebitda multiples

    hi all, quick question... why do some companies trade at higher EBITDA multiples than others? for instance, TMT is supposed to be the highest, while something like industrials generally trade at 4x-6x also, ive noticed that companies with higher ebitda ma ...

    15 comments - 0 silver bananas - Dec 13 2016 - 2:04pm -

  13. Help Valuing A Very Negative Company

    Currently working on valuing a very indebted retail company for potential takeover and having serious troubles. Operating Income is negative, EPS is negative, Net Income is negative, EBITDA is negative and jumping all over the place, Retained Earnings is ...

    15 comments - 0 silver bananas - Dec 15 2011 - 2:33pm -

  14. Adjusted EBITDA- Top down vs. Bottom up

    Monkeys- which of the two approaches are you using to calculate EBITDA, top down or bottom up? What line of work are you in? I'm in corporate banking and have always gone the top down route (I.e. Revenues- cogs- opex +/- non-cash and non-recurring it ...

    8 comments - 2 silver bananas - Jun 27 2017 - 9:33pm -

  15. When To Use EBIT vs EBITDA Multiples?

    Obviously the difference between the two multiples is D&A, so for a company/industry with lots of D&A, should you use EBITDA or not? I could see it being argued either way--i.e. if D&A is a large factor, don't use EBITDA because that igno ...

    9 comments - 0 silver bananas - Jan 24 2018 - 7:17pm -

  16. Best email I've gotten in a while

    I'm working one morning and a friend of mine from when we were in banking (he's in PE, I left PE for a startup) sends me a note with a subject that says "Which banker do you think I was behind this morning?" I opened the email and ther ...

    7 comments - 1 silver bananas - Apr 13 2017 - 2:09pm -

  17. EV/EBITDA for Chinese Oilfield Services Companies

    I need the ratio for a quick and dirty calculation, if someone can provide a ball park number that would be great. If not, directions to sources (Chinese equivalent of google finance/EDGAR etc.) where I can get info to build my own comp sheet is fine too. ...

    10 comments - 0 silver bananas - Feb 21 2011 - 12:49am -

  18. when stock price goes up, so does EV and shareholder's equity, but what happens to asset side of equation?

    I'm from a non-finance background, and recently started learning accounting/valuations...this may sound like a stupid question, but if assets = liabilities + shareholder's equity, and lets say the stock price of a firm skyrockets for some reason ...

    10 comments - 0 silver bananas - Aug 24 2010 - 7:00pm -

  19. EBITDA Multiple Basic Question

    If I know a company was acquired for 8x TTM EBITDA recently, does this mean that the company's equity was purchased for 8x TTM EBITDA, or does the 8x refer to the company's EV, from which I'd need to back out the debt and cash to arrive at ...

    9 comments - 0 silver bananas - Nov 21 2012 - 11:36am -

  20. Forward EBITDA vs. LTM

    When valuing a company through the comparables methodology, why do we apply the transaction multiple result to LTM EBITDA and trading multiples result to forward EBITDA? acquisition m&a ebitda @dcf; @valuation M&A #finance #IBD investment banking ...

    4 comments - 1 silver bananas - May 30 2019 - 6:23pm -

  21. A Firm's Value

    Have you ever wondered how investment banks or financial advisors calculate a firm's value exactly? In order to evaluate company X during an M&A transaction, a peer group of comparable companies (Company A and Company B) have to be selected. Subs ...

    5 comments - 1 silver bananas - Oct 28 2012 - 10:36pm -

  22. EBIT or EBITDA

    Hi guys, I'm trying to learn some basic IB technicals and was really hoping for help with a few concepts please: Isn't it better to value a company using EBIT rather than EBITDA because EBIT accounts for DA which is significant expense on the in ...

    4 comments - 0 silver bananas - Nov 11 2017 - 11:59am -

  23. Quick EBITDA question

    Hey gurus, Why do people in Wall Street look at EBITDA all the time when this figure doesn't include a lot of deductions? This figure just looks at the income from operation, but what if the deduction takes out a large chunk of the operating time? Ca ...

    5 comments - 0 silver bananas - Nov 16 2010 - 9:04pm -

  24. Bloomberg vs. ThomsonOne Data

    So, I'm working on a report for my school's investment club and got most of my data from a Bloomberg terminal. After realizing I needed a few more numbers while already back in my dorm, I logged on to ThomsonOne. Many of the numbers are differen ...

    4 comments - 0 silver bananas - Feb 6 2013 - 11:04pm -

  25. Historical EV/EBITDA Multiples

    Hello, How would you compute historical EV / EBITDA multiples for a listed company in order to compare them with the actual multiple? Let's say the current date is 31 Dec. 2011, the company fiscal year ends on 31 Dec., hence to compute the actual 201 ...

    4 comments - 0 silver bananas - Jul 31 2012 - 9:37pm -

  26. FCF, LFCF correct formula?

    I've noticed that there some conflicting formulas for FCF (unlevered), which one is correct? Start with NI: FCF = NI + D&A- change NWC- CapEx Start with EBIT: FCF = EBIT- taxes + D&A- change NWC- CapEx These seem to be conflicting because int ...

    4 comments - 0 silver bananas - Sep 16 2010 - 3:43pm -

  27. Help-Bloomberg look up ebitda multiples

    I don't have access to bloomberg. Can someone PLEASE look up and tell me the Forward EBITDA and/or Forward EBITDA Multiple for Tiffany's co.-TIF, Guess co.-GES and Ralph Lauren-RL Thanks! Help bloomberg ebitda ...

    3 comments - 0 silver bananas - Dec 8 2010 - 10:38am -

  28. LTM vs forward EV/EBITDA

    Hi all, Can someone please clarify few questions about multiples? How is LTM EV / EBITDA (P/E etc) calculated? Suppose you are in May 15th 2010. Latest published quarterly results are in March 31st 2010 and annual 2009. How exactly do I get last twelve mo ...

    3 comments - 0 silver bananas - Apr 18 2010 - 12:42pm -

  29. Best Site for EBITDA Shirts/Hats/Accessories

    Stumbled across Bull And Bear Clothing when searching for an "I <3 EBITDA" shirt for my hardo boss. Surprisingly good quality stuff lol. Ended up getting a "EBITDAD" hat for him too which he keeps in his office. ebitda clothing Swag ...

    2 comments - 3 silver bananas - Sep 26 2018 - 1:44pm -

  30. Alternative meanings of "EBITDA"

    So a colleague and I were bored at work and started brainstorming different phrases that EBITDA could stand for. The best we came up with was: Everyone's Busy If The Director Asks Can anyone else think of a funny / applicable definition for this ubiq ...

    2 comments - 2 silver bananas - Jun 28 2018 - 3:06am -

  31. EBITDA Question Bubble Gum Co

    Bubble Gum Co.'s operating profit is 5,000. It has a litigation charge of 1,000 in SG&A. D&A is 500. What is EBITDA? I thought the answer would be $4,500. EBIT or operating income = Revenue-Expenses so $5000-$1000 of litigation expense. and t ...

    2 comments - 0 silver bananas - May 26 2017 - 4:30pm -

  32. Depreciation in COGS

    I am working on the factory financial model. Therefore, depreciation costs of the Plant and Equipment are included in COGS, as these fixed assets are used in the direct production of the inventory. My question is- as far as all the fixed assets company ow ...

    2 comments - 0 silver bananas - Sep 13 2016 - 4:23am -

  33. Adjusted EBITDA in DCF Valuation?

    Do we use an EBITDA figure that has been adjusted for one-time, non-recurring items in the DCF calculation? If not, where do these adjustments go? Much appreciated. dcf ebitda ...

    2 comments - 0 silver bananas - Aug 27 2014 - 4:38pm -

  34. Difference between "Property Ebitda" and (regular) "EBITDA"

    Hi Guys, Looking at a bank book, but am stuck on a term- Can anyone help me quickly on the difference between ebitda and property ebitda? Thanks ebitda ...

    2 comments - 0 silver bananas - Sep 20 2012 - 3:28pm -

  35. Pre-Corporate EBITDA

    Anyone know what this is/why this is used? Google says this is EBITDA minus the SGA. Is that correct? invesment banking ebitda ...

    2 comments - 0 silver bananas - Jul 31 2012 - 9:37pm -

  36. Deal size in Cover Letter

    Hey, I know it is easy to fluff up anything in a resume or cover letter. ie shredding paper as an intern: "regularly maintaining corporate security process" (you all know what im talking about) anyway, Im interning in M&A now and want to kno ...

    2 comments - 0 silver bananas - Mar 2 2011 - 3:36pm -

  37. Funny accouting intern discussing his day to day

    Check out Dom Mazzetti talking about this accounting internship in "NYC". www.MikeandGian.com youtube.com/DomMazzetti @MikeandGian nyc college intern Internship ebitda Dom Mazzetti ...

    2 comments - 0 silver bananas - Jan 12 2011 - 7:23pm -

  38. Sopranos: M&A according to Pauli & Tony

    http://www.youtube.com/watch?v=YvyWyB6kbus Did not expect that from Pauli "Chihabita!!" ebitda sopranos ...

    2 comments - 0 silver bananas - Jan 13 2010 - 6:01pm -

  39. Pro Forma Capitalization EBITDA multiple

    How do you calculate an EBITDA multiple in the context of pro forma capitalization? Is it simply Total Cap/EBITDA? Or ebitda ...

    2 comments - 0 silver bananas - Nov 7 2009 - 3:44pm -

  40. Question about IRR

    Fellow monkeys, I was wondering if anyone knew how to calculate IRR if given EBITDA, Revenues, and Expenses for say years 5,6 and 7 of a certain project, with a terminal value of 1 year ebitda. Does anyone know the equation or how to do this in excel? I f ...

    2 comments - 0 silver bananas - Apr 30 2009 - 10:37am -

  41. Question on valuation of a video compression company

    I am working on valuing a private video-compression technology company, and wanted to know if the companies in this area are valued based on their revenues or more based on EBITDA? In other words would a buyer place more value on the revenues or on the eb ...

    2 comments - 0 silver bananas - Oct 10 2008 - 12:04pm -

  42. EV / EBITDA Definition

    EV / EBITDA is one of the most commonly used financial ratios when valuing a company, used in conjunction with EV / Revenue and P/E. In essence, it is the measure of the true value of a company (EV) in relation to the profitability of the company (EBITDA) ...

    - silver bananas - Mar 22 2019 - 12:56am -

  43. What Is Earnings Before Interest, Tax, Depreciation & Amortization (EBITDA)?

    EBITDA stands for Earnings Before Interest, Tax, Depreciation & Amortization and is one of the most commonly used indicators of the profitability of a firm. The EBITDA calculation is Operating Income + Depreciation + Amoritzation + Stock-Based Compens ...

    - silver bananas - Jul 31 2012 - 10:08pm -

  44. Help with a Simple Technical Question

    If there are two companies with same industry, same region, similar cap structure, Wacc/discount rate, same capex, working capital. One has a higher margin on its sales, one has a lower margin on its sale. Which would be trading at a higher EBITDA multipl ...

    1 comment - 0 silver bananas - Feb 7 2014 - 10:40am -

  45. EBIT multiple or EBITDA multiple

    What determines whether an industry uses the EBIT multiple versus the EBITDA multiple? I've heard that for capex heavy industries, EBIT is used more often since the depreciation in part covers the capital expenditures. However, woudldn't it be b ...

    1 comment - 0 silver bananas - Jul 31 2012 - 9:37pm -

  46. Question regarding IRR of a small company

    Fellow monkeys, ...

    1 comment - 0 silver bananas - May 5 2009 - 12:54pm -