Overview
EV/EBITDA compares enterprise value with operating earnings before depreciation and amortization.
Formula
EV/EBITDA = Enterprise Value / EBITDA
How to Interpret
High Value
A high multiple can reflect premium expectations, strong quality, or expensive pricing.
Low Value
A low multiple can suggest relative cheapness, cyclicality, or weaker market confidence.
Where It Is Used
EV/EBITDA should be paired with at least one complementary quality metric in decision filters.