Valuation

EV / EBITDA

Enterprise value (the whole company’s price including debt, minus cash) divided by EBITDA (earnings before interest, taxes, depreciation and amortization — a rough proxy for operating cash profit). Because it includes debt and strips out financing and accounting choices, it lets you compare companies with very different capital structures more fairly than P/E. Lower is cheaper; it’s a favorite of acquirers sizing up a whole business.

Educational information, not investment advice. See it applied across the screener →