EBITDA/EV Multiple

The EBITDA/EV multiple is a financial valuation ratio that measures a company’s return on investment (ROI). The EBITDA/EV ratio may be preferred over other measures of return because it is normalized for differences between companies. Using EBITDA normalizes for differences in capital structure, taxation, and fixed asset accounting. The enterprise value (EV) also normalizes for differences in a company’s capital structure.