EV/EBITDA multiple requires prudent use for companies with low profit margins; i.e. for an EBITDA estimate to be reasonably accurate, the company under evaluation must have legitimate profitability.
EV/EBITDA multiple requires prudent use for companies with low profit margins. The company under evaluation is i.e. for an EBITDA estimate to be reasonably accurate. The company under evaluation must have legitimate profitability.