# EV/EBITDA

Enterprise value divided by EBITDA.

## Definition

EV/EBITDA compares the whole-business value to EBITDA. Adds depreciation and amortization back into the denominator, making it broadly comparable across capital-intensity differences.

## Formula

Enterprise Value ÷ EBITDA

## Why it matters

EV/EBITDA is the workhorse multiple in M&A and credit. It removes accounting differences in depreciation and the distortions from leverage and tax rate, giving a cleaner cross-company comparison than P/E.

## How Standard Equity uses it

Not shown in the report. The forward EV/EBITDA for the current and next fiscal year is given to the AI analyst.

## The metric

| Category | Valuation |
| -------- | --------- |
| Unit     | x         |

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