EV/EBITDA

Enterprise value divided by EBITDA — how the whole company's price compares with its operating cash generation.
Also known as: Enterprise value to EBITDA

What it is

Enterprise value (EV) is market cap plus net debt — the cost of buying the entire business. EBITDA is operating profit plus depreciation and amortization.

Formula

EV/EBITDA = (market cap + net debt) ÷ EBITDA. Lower values mean a cheaper price per unit of operating cash flow.

Multiples are not comparable across sectors

What counts as a normal multiple differs by industry: capital-heavy manufacturers trade lower, high-growth sectors higher. Comparing a chipmaker with a drugmaker tells you little. The measure is useful within one industry, at one point in time.

Where to find the inputs

Market cap moves with the share price and comes from a broker or the exchange, while debt, cash and depreciation are in the financial statements and notes of DART periodic reports. This site does not use price data, so it does not compute EV/EBITDA; it shows the filed revenue and operating profit, and how they have moved, in each company’s quarterly table.

What to keep in mind

Because it includes debt, it compares leveraged and capital-intensive businesses (chips, telecom, chemicals) better than P/E, but it ignores the cash needed to replace equipment.

This explanation is general information, not investment advice. Rules reflect September 2026 and may change; check official exchange and broker notices.