Fundamentals

EV/EBITDA

EV/EBITDA is a valuation ratio comparing enterprise value to earnings before interest, taxes, depreciation, and amortization. It's widely used because it's debt-neutral and ignores non-cash charges, making it useful for comparing companies across different capital structures and industries.

Formula

EV/EBITDA = Enterprise Value / EBITDA

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This term is covered in the following lessons: