EV stands for “Enterprise Value,” which is the total value of a company. It takes into account the money the company is making (profits) and other things like its assets and debts.
EBITDA means how much money the company is making before subtracting certain expenses like interest, taxes, amortisation
For example, if your company has an EV/EBITDA ratio of 10, it means that for every rupee of profit the company makes, the buyer is paying Rs.10. A lower EV/EBITDA ratio usually means a better deal because you are paying less for each rupee of profit.
So, in simple terms, EV/EBITDA is a way to measure how much a company is worth compared to how much money it is making.
I believe you are new to the community. Please follow the thread “Investing basics” and shoot your questions there. This I believe is going to be taken down in sometime
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