Enterprise value/EBITDA ratio

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Enterprise value/EBITDA ratio (alternatively known as EV/EBITDA ratio) is the ratio of a stock's market price to its book value.


Definitions

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Enterprise value/EBITDA ratio (EV/EBITDA ratio). The ratio of a stock's market price to its book value.

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