fundamental

Enterprise Value To EBITDA

Enterprise Value To EBITDA (EV/EBITDA) is the ratio of a company’s enterprise value to its EBITDA, used as a rough multiple of operating earnings to compare value across firms.

Example: Company A has an enterprise value of $50 billion and EBITDA of $6.25 billion, resulting in EV/EBITDA of 8x.

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