We can Estimate the growth of company by EBITDA , First we will see what is EBITDA and how to use it to value a company.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization and is a metric used to evaluate a company’s operating performance. EBITDA is utilized in the valuation of businesses is by helping to measure operating profitability. A company’s EBITDA is a snapshot of its net income before accounting for other factors such as interest payments, taxes or the depreciation of assets.
EBITDA Margin = (earnings before interest and tax + depreciation + amortization) / total revenue
List of Pharma companies with high EBITDA Margin:
Suven Pharma
Market Cap: 12,476 cr
Revenue : 301 Cr
EBITDA Margin: 47.2%
Gland Pharma:
Market Cap: 63,256 cr
Revenue: 1081 cr
EBITDA Margin: 38%
CAPLIN Point:
Market Cap : 5995
Revenue: 303 cr
EBITDA Margin: 35.1%
Torrent Pharma
Market Cap: 52,670
Revenue: 2137
EBITDA Margin: 33.2%
Glenmark life science:
Market Cap :7471 Cr
Revenue: 562 cr
EBITDA Margin: 30
Source: Stock Edge
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