EV/EBITDA — Enterprise Value to EBITDA
Definition: Valuation multiple comparing total enterprise value to operating earnings. EV/EBITDA strips out capital structure and tax differences, making cross-company comparisons cleaner than P/E.
Example
In board meetings, you'll often hear something like: "Let's pull the latest EV/EBITDA numbers before we make a call" — shorthand for enterprise value to ebitda.
When you'll hear it
EV/EBITDA shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to enterprise value to ebitda — and they expect the room to already know what that means.
FAQs
What does EV/EBITDA stand for?
EV/EBITDA stands for Enterprise Value to EBITDA.
What does EV/EBITDA mean in business and finance?
Valuation multiple comparing total enterprise value to operating earnings. EV/EBITDA strips out capital structure and tax differences, making cross-company comparisons cleaner than P/E.
Where will I hear EV/EBITDA used at work?
EV/EBITDA comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for enterprise value to ebitda, so people assume you already know the term.
Related terms
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