How does one extrapolate EBITDA from payroll?

by a searcher from Miami University of Ohio

2 years ago

I am working on a valuation project and I found PPP data for the company, however I need to extrapolate EBITDA from the PP. I understand that the PPP is 2.5x the average monthly payroll of the business, but after this, what calculation would I have to make, or what information do I need, to find EBITDA from this figure?

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3 comments

searcher from University of Colorado at Boulder - Leeds School of Business

I would argue you could create a range based on the the general margins for a company and use the employee count to fact check

4 months ago | like reply | 0 likes

searcher from University of Connecticut

You do not have enough information.

2 years ago | like reply | 0 likes

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