M&A: Median EV/EBITDA transaction multiple worldwide 2004-2019
EV/EBITDA is not often a good measure of comparing valuations of two companies conducting business in different industries. This is because capital requirements of industries are different, making this formula somewhat unreliable. If used for two companies within the same industry it can be a very good measure of a businesses value for investors.
After a general upturn between 2009 and 2017, the median EV/EBITDA of transactions globally has see a two year decrease. As of 2019, (January to September) the median multiple of EV/EBITDA worldwide was 12.5x.