EV/EBITDA
A multiple comparing enterprise value, including equity and net debt, with EBITDA.
Plain languagePractical exampleConnected reading
01
What is it?
A multiple comparing enterprise value, including equity and net debt, with EBITDA.
02
Why does it matter?
It helps compare operating valuations across different capital structures.
03
How should it be read?
Check period alignment, leases, minorities and adjusted EBITDA definitions.
04
Common mistake
Using the multiple uncritically when EBITDA is negative or cyclical.
A simple example
Enterprise value of 1 billion and EBITDA of 100 million imply a 10x multiple.