EBITDA/enterprise value ratio (EBITDA/EV)

Definition:

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

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Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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An organization in European countries that helps facilitate trading done in European derivatives and equities market.

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