The situation
Comparable normalized EV/EBITDA multiples are 7×, 9× and 14×. The target has ₹30 crore EBITDA and ₹45 crore net debt.
Your task
What equity value follows from the median multiple?
Reveal step-by-step solution
Set up the problem
The median is 9×. Verify peers use a consistent period and lease basis.
Work through the numbers
Operating value = 9 × ₹30 = ₹270 crore. Equity = ₹270 − ₹45 = ₹225 crore.
Interpret the result
₹225 crore is the median-based indication. Check why the third peer trades at 14× before treating it as comparable.
What to remember
Pair enterprise value with an operating metric. Normalize periods and definitions before taking the median.