What does 5x EBITDA mean?

A 5x EBITDA multiple means that a company's enterprise value (EV) is equal to five times its earnings before interest, taxes, depreciation, and amortization (EBITDA).

• This multiple is often used in valuation analyses, and can help investors and analysts to compare companies across industries and identify potential investment opportunities.
• However, it is important to note that a high EBITDA multiple does not guarantee future success, and should be evaluated in the context of a company's overall financial health, industry trends, and other relevant factors.