A metric for deriving the value of a business. Meaning Enterprise Value divided by Earnings Before Interest, Taxes, Depreciation and Amortization, it compares the value of a company, including debt and other liabilities to its actual earnings, not including non-cash assets. The resulting enterprise multiple can be used to compare one company to another within the same industry, since the calculation is independent of the capital structure of a company. A lower enterprise multiple may indicate that a company is undervalued.
Related information about EV/EBITDA:
- EV/EBITDA - Wikipedia, the free encyclopedia
EV/EBITDA (Enterprise value/EBITDA) Earnings Before Interest, Taxes, Depreciation and Amortization is a valuation multiple used in finance and investment to ...
- ev/ebitda - Investopedia
A ratio used to determine the value of a company. The enterprise multiple looks at a firm as a potential acquirer would, because it takes debt into account - an ...
- EV/EBITDA
The main advantage of EV/EBITDA over the PE ratio ratio is that it is unaffected by a company's capital structure, in accordance with capital structure irrelevance.
- EV/EBITDA ratio
The EV/EBITDA ratio is a comparison of enterprise value and earnings before interest, taxes, depreciation and amortization. This is a very commonly used metric ...
- P/E vs. EV/EBITDA | Wall Street Oasis
Sep 27, 2007 ... Read forum discussions about P/E vs. EV/EBITDA on Wall Street Oasis, the largest finance industry social network and web community.
- One Ratio to Rule Them All: EV/EBITDA — Gannon and Hoang on ...
Jun 7, 2012 ... For understanding a business rather than a corporate structure – EV/EBITDA is probably my favorite price ratio. Why EV/EBITDA Is the Worst ...
- What is EV / EBITDA? - MoneyWeek Investment Tutorials - YouTube
Dec 17, 2010 ... To receive Tim's 50 FREE MoneyWeek Basics emails: http://bit.ly/mwk-basics Watch over 100 of Tim's videos for free: ...
- Metric:Enterprise Value to EBITDA
The ostensible reason given is that EV/EBITDA takes into account the entire value of ... Enterprise Value to EBITDA, or EV / EBITDA, is a measure of the cost of a ...