EV/EBITDA
EV/EBITDA Ratio
Valuation RatiosEnterprise Value divided by EBITDA. A valuation metric that compares total company value to operating earnings.
Formula
EV/EBITDA = Enterprise Value / EBITDA
Why it matters
More reliable than P/E for comparing companies with different capital structures. Lower ratio may indicate undervaluation.
Indian example
Related terms
Learn the concept
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