EV (Enterprise Value Multiple)

Enterprise Value to EBITDA Ratio Calculation







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EV to EBITDA ratio calculator is a finance tool to calculate the ratio between enterprise value and earnings before interest, taxes, depreciation and amortization. It is an investment valuation indicator to show the investors to estimate the value of a company. The term Enterprise value abbreviated as EV. The term Earnings before interest, taxes, depreciation and amortization is abbreviated as EBITDA. Generally, a higher enterprise value multiple to EBITDA may indicate that the overvaluation and the lower EV/EBITDA may indicate that the undervaluation of a company.

Formula
EV (Enterprise Value Multiple) = Enterprise Value/EBITDA