Valuation

What is EV/EBITDA (Enterprise Value to EBITDA)?

EV/EBITDA is a valuation metric that compares a company's total enterprise value to its operating earnings, removing the effects of debt, taxes, and accounting choices.

Formula

EV/EBITDA = (Market Cap + Debt - Cash) ÷ EBITDA

How to Interpret

A lower EV/EBITDA suggests better value. It's more reliable than P/E for comparing companies with different capital structures.

Typical Ranges

8-12x for most industries. Lower for cyclicals, higher for tech/growth.

Analyze EV/EBITDA (Enterprise Value to EBITDA) by Indian Market Sector

See how ev/ebitda (enterprise value to ebitda) varies across major Indian (NSE/BSE) market sectors. US sector benchmarks are summarised in the Typical Ranges section above.

Banking & Financial Services Information Technology Pharmaceuticals & Healthcare FMCG (Fast-Moving Consumer Goods)Automobile & Auto Components Energy & Oil & Gas Infrastructure & Construction Real Estate Telecom Metals & Mining Chemicals & Specialty Chemicals Insurance

Learn More in the Academy

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EBITDAAccounting

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Valuation MultiplesEquities

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Relative Valuation MethodsFundamental Analysis

Find Stocks Using This Metric

Use the Equiscale Stock Screener to filter US or Indian stocks by EV/EBITDA.

US Stock Screener →Indian Stock Screener →