EBITDA/EV Multiple

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Dictionary Says

Definition of 'EBITDA/EV Multiple'

A financial ratio that measures a company's return on investment. The EBITDA/EV ratio may be preferred over other measures of return because it is normalized for differences between companies. Using EBITDA normalizes for differences in capital structure, taxation and fixed asset accounting. Meanwhile, using enterprise value also normalizes for differences in a company’s capital structure.
Investopedia Says

Investopedia explains 'EBITDA/EV Multiple'

While computing this ratio is much more complicated, it is sometimes preferred because it provides a normalized ratio for comparing the operations of different companies. If a more conventional ratio (such as net income to equity) were used, comparisons would be skewed by  each company's accounting policies. EBITDA/EV is commonly used to compare companies within an industry.
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'EBITDA/EV Multiple'

  • 5 Common Trading Multiples Used In Oil And Gas Valuation

    http://www.investopedia.com/articles/basics/11/common-multiples-used-in-oil-and-gas-valuation.asp
    ... Enterprise Value to EBITDA: EV/EBITDA Also referred to as the enterprise multiple
    or the earnings before interest, taxes, depreciation and amortization (EBITDA ...

  • Take Control With Investing Absolutes

    http://www.investopedia.com/articles/fundamental-analysis/08/performance-profitability-value.asp
    ... This relationship creates a multiple that investors use to determine whether
    a stock is trading at fair value or is under- or overvalued. ...

  • Arch Coal - Some Risks, But More Value

    http://stocks.investopedia.com/stock-analysis/2011/Arch-Coal---Some-Risks-But-More-Value-ACI-BTU-JRCC-PVR-CNX-CLD-UNP1101.aspx
    ... Better still, using an EBITDA/EV multiple at the low end of the historical range,
    results in an attractive target price (in the $27 - $33 range), assuming the ...

  • Peer Comparison Uncovers Undervalued Stocks

    http://www.investopedia.com/articles/stocks/07/peer-comparison.asp
    ... ROE of 15%, it is a sign that Company X may not turn capital into profits as
    efficiently as its competitors, and should be valued at a lower multiple than its ...

  • A Checklist For Successful Medical Technology Investment

    http://www.investopedia.com/articles/stocks/08/medical-tech-investment.asp
    ... If there is a risk factor to medical technology that's not common to other companies,
    it is the significant role of the government at multiple levels of the ...

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