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.

By Tim Bennett
published

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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Tim Bennett

Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.

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