EV to EBITDA
Enterprise Value to Earnings before Interest, Taxes, Depreciation, and Amortization
Enterprise Value (EV)
The companies market cap + total debt - cash
Enterprise value is a more complete measure of a companies' operations because it factors in debt and equity. It is of note that cash is not a working part of the business, while debt and equity is going towards business expenses.
Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA)
This is a measure that works to understand profitability better than net income. This metric is not in use of itself, and is only high or low in comparison to past metrics or enterprise values by sector, which you can find here.
External Sources
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