Calculate EBITDA, margins, profitability and estimated business value
Operating Information
i
Total sales or income generated by the business
during the period, before deducting operating costs.
₹
i
Direct costs associated with producing or
purchasing the goods or services sold by the
business. Examples include raw materials,
inventory and direct production costs.
₹
i
Day-to-day business expenses excluding COGS,
interest, taxes, depreciation and amortization.
Examples include salaries, rent, utilities,
marketing and administration.
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i
Non-cash expense representing the allocation
of the cost of tangible assets such as
machinery, vehicles, buildings or equipment
over their useful life.
₹
i
Non-cash expense associated with allocating
the cost of intangible assets such as
software, patents, trademarks or licenses
over their useful life.
₹
Financial Information
i
Interest paid or payable on business debt,
loans, overdrafts, bonds or other financing.
Interest is excluded from EBITDA.
₹
i
Income tax expense for the period.
Taxes are excluded from EBITDA.
₹
i
The valuation multiple applied to EBITDA.
For example, a 5× multiple means the estimated
enterprise value is five times EBITDA.
The appropriate multiple depends on industry,
growth, risk and market conditions.