The EV/EBITDA is a financial ratio that compares a firm’s enterprise value (EV) to its earnings before interest, taxes, depreciation & amortization (EBITDA). The ratio’s numerator equals the sum of the market value of equity, debt, and preferred equity minus cash equivalents and short-term investments, whereas the denominator equals the earnings before tax plus interest, depreciation, and amortization.
This open-access Excel template is a useful tool for financial analysts, data analysts, portfolio managers, and anyonepreparing a corporate presentation.
Enterprise Value to EBITDA is among the topics included in the Equity Investments module of the CFA Level 1 Curriculum. Gain valuable insights into the subject with our Fundamentals of Equity Valuation course.
You can also explore other related templates such as—Return on Equity, Price Multiples, and Gordon Growth Model.