Valuation Terms
EV to EBITDA
A ratio comparing enterprise value to EBITDA.
Also called: enterprise value to EBITDA
What it means
EV to EBITDA compares the value of the whole business to its EBITDA. It is commonly used in company comparisons and deal analysis because it adjusts for differences in capital structure better than P/E does.
Why it matters
It is one of the most common valuation ratios in professional finance, especially for comparing operating businesses.