Food & Beverage 4th Quarter 2020 Review

It seems only logical that companies with higher EBITDA margins in a particular sector would warrant higher valuation multiples than companies with lower EBITDA margins in the same sector. In general, EBITDA margins reflect the percentage of revenues that a company retains after operating expenses and thus reflects the cash available to (i) service their debt (interest and principal payments), (ii) invest in the future through capital expenditures or increases in working capital, or (iii) pay shareholders (after income taxes) in the form of dividends.

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  Food_Beverage_Newsletter_4th_Qtr_2020.pdf