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Enterprise value and EV/EBITDAAnalyst

Company value including debt, compared with operating earnings.

What you’ll enter

  • Market capitalization (millions)
  • Total debt (millions)
  • Cash (millions)
  • EBITDA (millions)

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The formula

EV = Market cap + Debt − Cash EV/EBITDA = EV ÷ EBITDA

Because EV includes debt, EV/EBITDA lets you compare companies with different amounts of borrowing.