EV / EBITDA
Short definition
EV/EBITDA is enterprise value over EBITDA. It is a coarse operating multiple independent of capital structure; it ignores cash tax, capex and ΔNWC.
Detailed explanation
The EV definition (leases, cash) and reported/adjusted/forward EBITDA sit in the two sides. IFRS 16 breaks both. Forward EBITDA understates the multiple.
In asset-heavy names EBITDA can be high and free cash low; the multiple looks cheap. Comparables must sit at the same accounting and cycle point.
Why it matters for the CFO
It is the most common M&A and listing language. A multiple without DCF hands WACC and g to the market — that is a conscious choice.
How it is calculated
FD/FAVÖK = İşletme değeri / FAVÖK
Variables in the formula
- EV/EBITDA: EV ÷ EBITDA (turns)
How to read it
8.0x means EV is 8 times EBITDA. Cheap/dear cannot be said without comps and cash conversion. There is no universal fair turn.
Numerical example
EV 1,220 mn TL, EBITDA 120 → EV/EBITDA = 10.2x.
Related calculators
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What to learn next
Definitions are educational. They are not investment, credit or tax advice.