EV/EBITDA

valuation

Enterprise value to EBITDA is a valuation metric that compares a company's total value (market cap plus debt minus cash) to its earnings before interest, taxes, depreciation, and amortization. Unlike P/E, it accounts for capital structure differences, making it useful for comparing companies with different debt levels. Lower ratios may indicate relative undervaluation.

Related Terms

Debt-to-Equity Ratio Market Capitalization Price-to-Earnings Ratio (P/E)

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