Enterprise Value Analysis: Basics
Interactive

Enterprise Value Analysis: Basics

Intuition Publishing
Updated Sep 24, 2020

EBITDA measures the operating profit made by a firm before deductions for noncash items. The EV/EBITDA ratio measures the relationship between total firm value and the earnings available for bondholders, bank lenders, and stockholders. Here we explore the calculation and interpretation of EV/EBITDA.