EV/EBITDA
EV/EBITDA compares a company’s enterprise value to its earnings before interest, taxes, depreciation, and amortization — a capital-structure-neutral valuation measure.
EV/EBITDA divides enterprise value (EV) by EBITDA (earnings before interest, taxes, depreciation, and amortization). Enterprise value is market cap plus net debt, so it reflects the value of the whole business, not just its equity.
Because EBITDA strips out interest, taxes, and non-cash charges, EV/EBITDA lets you compare companies with different debt loads and tax situations more fairly than P/E does. It is popular for comparing capital-intensive businesses and companies being evaluated for acquisition.
Like all single ratios, it is a starting point rather than a verdict: EBITDA excludes real costs such as capital spending, so a low EV/EBITDA is not automatically a bargain. Values on stocks-llm are delayed data shown with their as-of date.
See more terms in the stocks-llm glossary.
Informational only — NOT financial advice. This is an educational definition, not a recommendation to buy or sell anything. Metrics on stocks-llm are delayed data and may be missing or stale. Always verify information independently and consult a qualified financial professional before making any investment decision.