LTM EBITDA Multiple is defined as:
EBITDA Multiple = Enterprise Value / LTM EBITDA
Applying this formula, Japan Metropolitan Fund Investment’s EV/EBITDA Ratio is calculated below:
Enterprise Value [ ¥1,207.6 B ]
(/) EBITDA [ ¥48.447 B ]
(=) EV/EBITDA Ratio [ 24.9x ]
The tables below summarizes the trend in Japan Metropolitan Fund Investment’s EV/EBITDA Ratio over the last five years:
| Date |
Enterprise Value |
EBITDA |
EV/EBITDA Ratio |
| 2020-02-29 |
¥753.6 B |
¥40.604 B |
18.6 |
| 2021-02-28 |
¥1,086.3 B |
¥38.934 B |
27.9 |
| 2022-02-28 |
¥1,270.7 B |
¥46.38 B |
27.4 |
| 2023-02-28 |
¥1,172.9 B |
¥49.316 B |
23.8 |
| 2024-02-29 |
¥1,201.3 B |
¥48.194 B |
24.9 |
EBITDA Multiple, Enterprise Value / EBITDA, or EV / EBITDA measures
the dollars in Enterprise Value
for each dollar of EBITDA.
EBITDA is used in the denominator since it is capital structure neutral and can be used to compare companies with different levels of debt (See EBITDA for benefits).
We use Enterprise Value as the numerator to consider
the claims on EBITDA of both debt and equity holders.
Strong revenue and EBITDA growth are highly correlated with higher
EBITDA Multiples.
Read more about enterprise value (ev) and ebitda
Click the link below to download a spreadsheet with an example Price/Book calculation for Japan Retail Fund Investment Corp below: