EV/EBITDA

EV/EBITDA shows how many times annual operating profit you pay to buy the whole company. It is the preferred multiple for comparing companies with very different debt levels, because both numerator and denominator sit before the effects of financing. It only means something against peers in the same sector: what is expensive in retail is cheap in software.

See the full glossary · What the Celsmar financial terminal is

Definition for informational purposes. It is not financial advice nor a recommendation to buy or sell.