EV/EBITDA = Enterprise Value
/ Earnings Before Depreciation and Amortization
EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio
to determine the fair market value of a company.
Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio
Please read Which price ratio outperforms the enterprise multiple?
, Earnings Before Depreciation and Amortization
, P/E Ratio