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VEBITDA Multiples and Tax Rates

The document contains graphs and tables exploring the relationships between valuation multiples like value/EBITDA, tax rates, capital expenditure rates, returns on capital, and weighted average cost of capital. Specifically, it shows that: 1) Value/EBITDA decreases as tax rates increase from 0% to 50%. 2) Value/EBITDA decreases as the net capital expenditure rate increases from 0% to 30%. 3) Value/EBITDA is highest when the return on capital is near the weighted average cost of capital of 10%.

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minhthuc203
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19 views5 pages

VEBITDA Multiples and Tax Rates

The document contains graphs and tables exploring the relationships between valuation multiples like value/EBITDA, tax rates, capital expenditure rates, returns on capital, and weighted average cost of capital. Specifically, it shows that: 1) Value/EBITDA decreases as tax rates increase from 0% to 50%. 2) Value/EBITDA decreases as the net capital expenditure rate increases from 0% to 30%. 3) Value/EBITDA is highest when the return on capital is near the weighted average cost of capital of 10%.

Uploaded by

minhthuc203
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
You are on page 1/ 5

Tax Rate

VEBITDA Multiples and Tax Rates

18

16

14

Value/EBITDA

12

10

0%

10%

20%

30%
Tax Rate

Page 1

40%

50%

Net CpEx

Value/EBITDA and Net Cap Ex Ratios

12

10

Value/EBITDA

0%

5%

10%

15%
Net Cap Ex/EBITDA

Page 2

20%

25%

30%

ROC

Value/EBITDA and Return on Capital

12

10

Value/EBITDA

WACC=10%

WACC=9%
WACC=8%

6%

7%

8%

9%

10%

11%

Return on Capital

Page 3

12%

13%

14%

15%

Inputs

Inputs
Tax Rate =
WACC =
Cap Ex/EBITDA=
Deprec'n/EBITDA =
g=
Output
VEBITDA =
Tax Rate
0%
10%
20%
30%
40%
50%

36% ROC =
10% Reinvestment Rate=
0.30
0.2
5%

25.60%
58.59%

8.24

Value/EBITDA
16
14.3
12.6
10.9
9.2
7.5

NCex/EBITDAVEBITDA
0%
10.24
5%
9.24
10%
8.24
15%
7.24
20%
6.24
25%
5.24
30%
4.24

ROC
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%

WACC=10% WACC=9%
WACC=8%
1.71
2.13
2.84
2.93
3.65
4.88
3.84
4.8
6.4
4.55
5.69
7.59
5.12
6.4
8.53
5.59
6.98
9.31
5.97
7.47
9.96
6.3
7.88
10.5
6.58
8.23
10.97
6.83
8.53
11.38

8%
9%
10%
11%
12%

VEBITDA
13.65
10.24
8.19
6.83
5.85

WACC

Page 4

Inputs

0.1953125
0.256

Page 5

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