EV/EBITDA (Enterprise value/EBITDA) Earnings Before Interest, Taxes, Depreciatio n and Amortization is a valuation multiple An advantage of this multiple

is that it is capital structure-neutral, and, ther efore, this multiple can be used to directly compare companies with different le vels of debt The EV/EBITDA multiple requires prudent use for companies with low profit margin s; i.e. for an EBITDA estimate to be reasonably accurate, the company under eval uation must have legitimate profitability

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