Exit Multiple
Short definition
An exit multiple values the firm at the horizon with a market turn. Extending today’s multiple freezes the cycle and the rate regime.
Detailed explanation
EV/EBITDA is common; a forward-EBITDA multiple inflates the denominator. Cross-check with Gordon: are implied g and implied ROIC consistent?
Peak multiple plus peak EBITDA is double optimism. Normalised EBITDA or a mid-cycle multiple is more honest.
Why it matters for the CFO
PE exits and listing reports often terminalise on a multiple. Locking the cycle locks value.
How it is calculated
TV = Çıkış çarpanı × Dönem sonu FAVÖK (veya satış / FVÖK)
Variables in the formula
- Exit multiple: Horizon market turn
How to read it
8.0x today and 8.0x at exit means rates and growth stay put — rarely true.
Numerical example
Year-5 EBITDA 140 mn TL, exit 7.0x → TV = 980 mn TL (debt and cash bridge separate).
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What to learn next
Definitions are educational. They are not investment, credit or tax advice.