EBITDA/enterprise value ratio
EBITDA/enterprise value ratio (EBITDA/EV)
A modified measure of the ratio of a company's operating and non-operating profits to the market value of the firm's equity and debt. By providing a simple, though incomplete, ratio of profit to value, EBITDA/EV is often used to estimate the cash return on an investment. See: Enterprise value/EBITDA ratio
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.