Earnings Multiple Calculator
- Earnings Multiple Calculator helps estimate how much a company is worth based on its earnings. It’s a valuable tool for investors, analysts, and business buyers who need to assess a company’s valuation compared to its profit-generating ability.
This tool falls under the 企业估值计算器 category. It simplifies the process of comparing companies or determining a fair purchase price, using commonly accepted financial ratios.
Earnings multiples give insight into market sentiment, growth potential, and financial performance. High multiples may suggest strong future prospects, while lower ones might indicate risk or slow growth.
formula of Earnings Multiple Calculator
Here is the core formula used:
Earnings Multiple = Company Valuation / Earnings
地点：
- 公司估值 = market value, purchase price, or 企业价值 该公司的
- 佣金 = metric such as net income, EBITDA, or EBIT for the relevant period
Below is how to calculate different types of earnings:
Net Income = Total Revenue − Cost of Goods Sold − Operating Expenses − Interest Expense − Taxes
EBIT = Total Revenue − Cost of Goods Sold − Operating Expenses
EBITDA = Total Revenue − Cost of Goods Sold − Operating Expenses (excluding Depreciation and Amortization)
定义：
- 总收入 = income from all sales
- 销货成本（COGS） = direct cost of production
- 营业费用 = salaries, rent, utilities, marketing, etc.
- 利息花费 = interest paid on loans or other debt
- 税 = government income taxes
- 折旧和摊销 = non-cash expenses for assets over 次
Quick Reference Table: Earnings Multiples by Industry
| 产业应用 | Common Earnings Multiple (EBITDA) | 笔记 |
|---|---|---|
| 技术 | 10 - 25 | High due to growth potential |
| 制造 | 5 - 10 | Stable but moderate growth |
| Retail / 零售 | 4 - 8 | Seasonal and margin-dependent |
| 医疗保健 | 8 - 14 | Relatively stable demand |
| 新能源 | 3 - 7 | Sensitive to commodity prices |
Valuation and Earnings Types
| 按揭年数 | 意 |
|---|---|
| 创造市场价值。 | Current stock price × number of shares |
| 企业价值 | Market Value + Debt − Cash |
| 净收入 | Profit after all expenses and taxes |
| EBIT | 息税前利润 |
| EBITDA | Earnings before interest, taxes, depreciation, amortization |
Example of Earnings Multiple Calculator
Let’s say you want to calculate the earnings multiple of a company with the following values:
- 公司估值：$ 8,000,000
- Earnings (EBITDA)：$ 1,000,000
步骤1：
Earnings Multiple = Company Valuation / Earnings
Earnings Multiple = 8,000,000 / 1,000,000 = 8
This means the company is valued at 8倍 its EBITDA. This ratio helps compare this business with others in the same industry to decide if the price is fair.
最常见的常见问题解答
It depends on the industry. For example, tech companies often trade at higher multiples (15–25), while retail or manufacturing businesses typically fall between 4 and 10.
使用 VHDL 语言编写 EBITDA when you want to compare companies without the impact of debt structure, taxes, and non-cash expenses. It provides a cleaner view of operating performance.
Yes, but with caution. For startups with little or no earnings, this method may not be reliable. Instead, use revenue multiples or future earnings projections.