What is the EV/EBITDA ratio?

Tim Bennett explains the EV/EBITDA ratio, a popular measure which analysts use to work out whether a share is cheap or expensive.

Tim Bennett explains the EV/EBITDA ratio, a popular measure which analysts use to work out whether a share is cheap or expensive.See also: Beginner's guide to investing: enterprise value

See also MoneyWeek's financial glossary.

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