What is the 3x EBITDA method?
Die 3-fache EBITDA Methode ist eine sehr sehr vereinfachte Form der Firmenbewertung. Sie bedeutet:
You get the value of your company by multiplying your EBITDA by the number 3.
How do you calculate EBITDA?
So erhalten Sie den Wert:
Jahresüberschuss oder -verlust |
+ Steueraufwand |
– Steuererstattungen |
+ Zinsaufwand |
– Zinsertrag |
– Bereinigungen |
= EBIT (Ergebnis vor Zins und Steuern) |
+ Abschreibungen auf das Sachanlagevermögen |
+ Abschreibungen auf immaterielle Vermögensgegenstände |
= EBITDA (Ergebnis vor Zins, Steuern, Abschreibungen und Abschreibungen auf immaterielle Vermögenswerte) |
Why EBITDA?
The EBITDA metric provides a good insight into the company’s profitability, independent of financing costs, taxes and depreciation.
Is 3 definitely the right multiplier?
No. The purpose of the multiplier method is to compare yourself with a similar company. Two key factors influencing the multiplier are industry and company size. Please see the monthly updated multiples overview page . But so-called soft factors, such as the company’s dependence on the current owner, extremely positive growth prospects, market position, etc. or special risk factors, such as an impending legal dispute, can also make an adjustment of the multiplier necessary.
Advantages and disadvantages of the 3x EBITDA method
Vor und Nachteile der Multiplikator Methode:
For which industries is 3x EBITDA suitable? For which ones not?
The “3x EBITDA = enterprise value” method is well suited to more mature, stable industries with predictable cash flows, such as consumer goods, retail, telecommunications, industrial manufacturing and utilities. It is less suitable for volatile or highly cyclical industries such as technology, commodities, construction and financial services, as these industries often have unpredictable revenues and high volatility. This method is rather unsuitable for startups in general.
The “3x EBITDA = enterprise value” method can be useful as a quick and easy valuation rule, but it has significant limitations. Their use should be carefully considered and supplemented by other valuation methods to obtain a more complete picture of the company’s value.
What other rules of thumb are there?
- Depending on the industry, the 3x sales = company value or the 3x profit = company value approach may also make sense. For details, see the relevant blog posts.
- Calculate the average EBIT (earnings before interest and taxes) of the last three years. Multiply this by a factor of 4 (low value) to 6 (high value). Subtract the company’s debts from the two results. You will receive a range within which your company’s value roughly falls.
- Consider how much profit a buyer could take out of the company in the next few years. Set the price so that the purchase price can be recouped within 4 to 7 years.