Oceňování 2018, 11(1):33-53 | DOI: 10.18267/j.ocenovani.207
EV / EBITDA Multiple: adjusted EBITDA - Symmetrical Balance Sheet Treatment
- Ing. Lukáš Hruboň, Ph.D., ACCA
This article presents a concept of the assets and liabilities allocation between the corporate finance aggregates: Net working capital and Net debt, respectively. A correct quantification and application of both aggregates is a prerequisite for a valid corporate valuation. The author argues that, namely from the market multiple based valuations perspective, all assets and liabilities having their double entry as revenues (income) and costs affecting adjusted EBITDA shall be treated as Net working capital. All other items not related to adjusted EBITDA including assets and liabilities related to investment activity, financing / dividend pay-outs shall be treated as Net debt. However, there might be non-classified items such as provisions or deferred tax balances non-compliant with the liability definition or already correctly included in a DCF valuation model. In case of significant off-balance sheet liabilities, the author suggests their valuation shall be attempted and value included in Net debt.
Keywords: Market comparison valuation; EV, EBITDA multiple; EBITDA adjusted; normalized EBITDA; Net debt; Net working capital
Grants and funding:
Článek je zpracován jako jeden z výstupů výzkumného projektu Fakulty financí a účetnictví VŠE Praha, který je realizován v rámci institucionální podpory VŠE IP100040.
JEL classification: G30
Published: April 27, 2018 Show citation
References
- Damodaran A. (2005): Dealing with Cash, Cross Holdings and Other Non-Operating Assets: Approaches and Implications, SSRN Electronic Journal, September 2005
Go to original source... - Hruboň, L. (2014b): Násobek EV / EBITDA: význam, analýza fundamentálních faktorů, Oceňování, 2014, č. 3, s. 29 - 44, ISSN 1803-0785.
- Hruboň, L. (2016): Násobek EV/EBITDA: Regresní analýza fundamentálních faktorů - data z WSE v letech 2012 - 2014, Oceňování, číslo 6/2016, ročník 9
- Hruboň L. (2017): Násobek EV / EBITDA: kvantifikace veličiny EBITDA, Oceňování, číslo 3/2017, ročník 10
- Mařík, M. aj. (2007): Metody oceňování podniku: Proces ocenění, základní metody a postupy. 2. vydání. Praha, Ekopress, 2007. ISBN 978-80-86929-32-3. Go to original source...
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