EV / EBITDA
Enterprise value divided by earnings before interest, taxes, depreciation and amortization.
How to read it
Compares companies with different debt levels better than P/E does. Lower is cheaper.
How to use it
Compare companies with different leverage and tax.
Limitations
EBITDA ignores capital spending; capital-heavy businesses look cheaper than they are.
In Kereon
Kereon shows this figure as its data vendor publishes it and does not recompute it, so the vendor's exact inputs — which period's earnings, which balance sheet, which adjustments — are not visible here. The calculation above is the standard definition.
Also called: ev / ebitda, ev/ebitda.