Trading multiples
Enterprise value, the five multiples, and the range.
By Surojit Chakraverti, founder of L3VLUP and an investor running a long-short healthcare and technology equities strategy.
On this subject: trading multiples.Updated 30 September 2026
What it does
The multiples themselves, and the statistics quoted from them. Enterprise value is built from the share price, the diluted count and the capital structure; enterprise-value multiples are read on revenue and EBITDA and price multiples on net income, each on the calendarised or LTM figure that matches. The range is quoted as lower quartile, median, mean and upper quartile, every one a formula over the peer row.
Where it lives
The same schedule in each model that carries it, with the rows to open. Open a model in the browser, go to the sheet, and click the lines.
- Assumptions, rows 6–10: Share price (illustrative input), Diluted shares outstanding, Total debt, Cash and equivalents…
- Multiples, rows 6–10: Market capitalisation, Plus debt, Less cash, Plus minority interest…
- Multiples, rows 13–17: EV / LTM revenue, EV / LTM EBITDA, EV / CY1 EBITDA, Price / LTM earnings…
- Multiples, rows 20–22: Revenue growth, CY1 vs CY0, EBITDA margin, LTM, Net debt / LTM EBITDA
- Summary, rows 5–6: Low end quartile, High end quartile
- Summary, rows 10–14: EV / LTM revenue, EV / LTM EBITDA, EV / CY1 EBITDA, Price / LTM earnings…
What a reviewer looks for
- Enterprise value over net income, or price over EBITDA.
- Basic shares where the diluted count is available.
- The mean quoted as the answer when one peer is an outlier.
- A multiple shown without the growth and margin that explain it.
Learn it, then build it
Understand · Primer
Comparable Company Valuation
Build · Lab · ~15 min
Comps Explorer
Curate a peer set you can defend name by name, calendarise it to one year end, and say what the median does and does not tell you.
Build · Lab · ~3 min
Name That Multiple
Place a business in the right EV/EBITDA band from its quality alone, and say what drives it.
Build · Lab · ~12 min
EV to Equity Bridge
Walk from enterprise value to a price per share without dropping a claim: net debt, pensions, minorities, leases and options.
Read · Guide · 7 min
Comparable Companies (Comps) Interview Questions
Read · Guide · 7 min
Enterprise Value vs. Equity Value, Once and For All
Vocabulary: Comparable Companies (Comps), Entry Multiple.