# EV / EBITDA

EV/EBITDA is the enterprise value of a company divided by its earnings before interest, taxes, depreciation and amortization. (EV/EBITDA)

EV/EBITDA answers the question "What is a company being valued per each dollar of EBITDA?" A high (low) EV/EBITDA mean the company is potentially overvalued (undervalued).

Other similar metrics include :

EV/Revenues: How much is each dollar of revenues worth to investors?

EV/EBIT : Or each dollar of EBIT?

EV/Free Cash Flow : Or each dollar of FCF?

For more information on evaluating valuation multiples similar to this, please see our original white paper research : Making Sense Of Valuation Multiples.

EV / EBITDA = Enterprise Value / Earnings Before Depreciation, Amortization, Interest and Taxes (TTM)

(See other glossary entries for the component calculations)