Given an EBITDA-based valuation, how much value is driven by changes in top-line revenue and EBITDA margin on the company’s P&L.
Module Category: P&L and Operational Drivers
Key Concept: In companies with EBITDA-based enterprise valuations, EBITDA (E) can be expressed as the product of revenue (R) and an EBITDA Margin (EM). This allows analysts to break EBITDA Growth (see Module 04) into Revenue Growth and EBITDA Margin Expansion.