Relative Valuation (Comparable Company Analysis) Calculator

This calculator helps financial analysts and investors perform a Comparable Company Analysis to determine the relative valuation of a company by comparing it with similar companies in the industry.

Calculator

Results

EV/EBITDA -
Price to Sales -

Data Source and Methodology

Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da fonti finanziarie autorevoli e metodologie di analisi comparabile.

The Formula Explained

EV/EBITDA = \(\frac{Market\ Capitalization + Debt - Cash}{EBITDA}\)

Price to Sales = \(\frac{Market\ Capitalization}{Revenue}\)

Glossary of Terms

How It Works: A Step-by-Step Example

For example, if a company has a market capitalization of $1 million, EBITDA of $500,000, and revenue of $2 million, the EV/EBITDA ratio is 2 and the Price to Sales ratio is 0.5.

Frequently Asked Questions (FAQ)

What is Comparable Company Analysis?

It is a valuation method to assess the value of a company by comparing it with similar businesses.

Why is EBITDA used?

EBITDA is used as it provides a clear view of a company's operating profitability without the effects of capital structure, tax policies, and depreciation.

How do I input data into the calculator?

Enter the company's financial metrics and market data into the designated fields to perform the analysis.

Can this calculator be used for any industry?

Yes, however, ensure the companies you are comparing belong to the same industry for meaningful analysis.

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