About this lesson
Peer comparisons: valuing a business on EV/EBITDA in Google Sheets
In Google Sheets, enterprise value is market capitalisation + net debt (=B2+C2). Divide it by EBITDA for each peer's multiple (=D2/E2), take =MEDIAN(F2:F8) and =QUARTILE.INC(F2:F8,1) and (F2:F8,3) to ignore outliers, then multiply the target's EBITDA by each to get an implied enterprise value range.
Using Excel? Do this lesson in Excel.
=B2+C2What you'll practise
Value a private target against seven listed peers: enterprise value, EV/EBITDA multiples, the median and quartiles, then the implied value range.
4 steps · 40 points · the cells outlined in gold below
- trading comparables
- enterprise value
- EV/EBITDA
- MEDIAN
- QUARTILE.INC
- implied valuation
The data
| A | B | C | D | E | F | |
|---|---|---|---|---|---|---|
| 1 | Peer | Mkt cap ($m) | Net debt ($m) | EV ($m) | EBITDA ($m) | EV/EBITDA (x) |
| 2 | Tasman Logic | 1,245 | 188 | 132.6 | ||
| 3 | Bunya Systems | 586 | 74 | 71.9 | ||
| 4 | Coral Ledger | 2,310 | 405 | 214.8 | ||
| 5 | Pilbara Data | 418 | -36 | 47.3 | ||
| 6 | Myall Software | 932 | 121 | 99.4 | ||
| 7 | Karri Cloud | 3,780 | 260 | 168.2 | ||
| 8 | Redfin Analytics | 274 | 58 | 41.5 | ||
| 9 | ||||||
| 10 | Median | |||||
| 11 | Lower quartile | |||||
| 12 | Upper quartile | |||||
| 13 | ||||||
| 14 | Target's EBITDA ($m) | 38.5 | ||||
| 15 | Implied EV, low ($m) | |||||
| 16 | Implied EV, mid ($m) | |||||
| 17 | Implied EV, high ($m) |