Equity / Valuation Metric

EV/EBITDA

Definition

A valuation multiple comparing enterprise value to earnings before interest, taxes, depreciation, and amortization. Preferred for comparing companies with different capital structures.

Example
An EV/EBITDA of 8.0 is often considered attractive for mature companies.
Related Terms
EBITDA Enterprise Value (EV) Price-to-Earnings Ratio (P/E Ratio)
Frequently Asked Question
What is EV/EBITDA?
EV/EBITDA compares enterprise value to EBITDA (earnings before interest, taxes, depreciation, and amortization). It is preferred over P/E for cross-company comparisons because it is capital-structure neutral.
APA Citation
Clark, R. (2025). EV/EBITDA. VixShield Trading Glossary. Retrieved from https://www.vixshield.com/glossary/ev-ebitda
RC
Russell Clark, FNP-C
Author of SPX Mastery series · Founder of VixShield
Last updated:  ·  Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.