A company has $300M EBITDA growing at 15% per year. What's EBITDA in 5 years (mental math)?

Question

IBPrep · Accepted Answer

Use the Rule of 72: years to double = 72 / growth rate = 72 / 15 ≈ 4.8 years. EBITDA roughly doubles in 5 years → ~$600M. (More precisely: $300 × 1.15^5 = $300 × 2.011 ≈ $603M.)

A company has $300M EBITDA growing at 15% per year. What's EBITDA in 5 years (mental math)?

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A company has $300M EBITDA