Valuation

Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization

EV/EBITDA

Enterprise value versus operating earnings

Definition

Enterprise value (equity plus net debt) divided by EBITDA. It is less distorted by capital structure than P/E, so it is a common way to compare companies with different debt loads. BullBrief reads FMP's EV/EBITDA (or the TTM enterprise-value multiple) when the Starter feed includes it.

Enterprise Value ÷ EBITDA

Typical range

S&P 500 often teens; software can run 20-40x; banks are a poor fit for this multiple

See it in a Brief