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.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter Indian stocks by EV/EBITDA.
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