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How are the Buyout multiples (median EV/EBITDA and EV/Revenue) calculated?
How are the Buyout multiples (median EV/EBITDA and EV/Revenue) calculated?
Zack Hachem avatar
Written by Zack Hachem
Updated over 2 years ago

Calculation of the buyout multiples (median EV/EBITDA and median EV/Revenue) in Charts & League Tables:

For deals where EV (enterprise value) is available:

EV divided by EBITDA for the EV/EBITDA multiple

EV divided by Revenue for the EV/Revenue multiple

If the EV is not available the following rules apply:

  • For Buyout, Add-On and Public to Private deals with no EV and no Acquired Share %, we use Deal Size with Leverage instead of the EV.

  • For Buyout deals with no EV, and Acquired Share is 100%, we use Deal Size with Leverage instead of the EV.

The following calculation then applies:

Deal Size divided by EBITDA for the EV/EBITDA multiple

Deal Size divided by Revenue for the EV/Revenue multiple

Then we take all these multiples per quarter/year and find the median of the dataset for each respective period.

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