EBITDA Yield equals Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) / Enterprise Value (EV). It is the inverse of the EV to EBITDA.
The screener only has EV to EBITDA available to screen with (As one of the four Factors with sliders) but EBITDA Yield is available as an output output.
Use it to implement the Acquirer’s Multiple investment strategy
You can use this ratio to implement the Acquirer’s Multiple investment strategy as explained in the excellent book by Tobias Carlisle called The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market.
What is The Acquirer’s Multiple?
The Acquirer’s Multiple is a valuation ratio that compares a company’s Earnings Before Interest Taxes Depreciation and Amortisation (EBITDA) to its Enterprise Value.
It thus calculates the cost – EV - an outside investor would have to pay to acquire a company’s operating profits.
How to use the ratio
Available as a screening ratio: No (use it inverse EV to EBITDA)
Available as an output column ratio: Yes
How to select the highest EBITDA to EV companies
To find companies with the highest EBITDA Yield select the EV to EBITDA ratio and set the slider from 0% to 10%.
Click here to start using EBITDA Yield (the Acquirer’s Multiple) in your portfolio NOW!