Enterprise value divided by EBITDA — a capital-structure-neutral valuation metric.
EV (enterprise value) = market cap + debt − cash. EBITDA strips out interest, taxes, depreciation, amortization. EV/EBITDA allows comparison across companies with different debt levels and accounting treatments. Common in M&A and private equity.
Enterprise value divided by EBITDA — a capital-structure-neutral valuation metric. EV (enterprise value) = market cap + debt − cash. EBITDA strips out interest, taxes, depreciation, amortization. EV/EBITDA allows comparison across companies with different debt levels and accounting treatments. Common in M&A and private equity.
In valuation, EV/EBITDA is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
EV (enterprise value) = market cap + debt − cash. EBITDA strips out interest, taxes, depreciation, amortization.
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