Enterprise Value Over EBITDA (Historical)

Returns the historical Enterprise Value to EBITDA ratio. This is one of the most commonly used valuation multiples in financial analysis.

Formula

EV/EBITDA = Enterprise Value / Earnings Before Interest, Taxes, Depreciation and Amortization

Parameters

Parameter Required Description
Symbol Yes Stock ticker symbol
Year Yes Fiscal year or period code
Quarter No Quarter 1-4
TTM No "TTM" for trailing twelve months

Interpretation

  • Lower values may indicate undervaluation
  • Higher values may indicate growth expectations
  • Industry-specific ranges apply
  • Useful for comparing companies with different capital structures

Examples

=hf_Enterprise_Value_over_EBITDA("AAPL", 2023, 4)
Q4 2023 EV/EBITDA
=hf_Enterprise_Value_over_EBITDA("MSFT", "ly")
Last year EV/EBITDA
=hf_Enterprise_Value_over_EBITDA("GOOGL", 2023, , "TTM")
TTM EV/EBITDA

When to Use

  • Valuation comparisons across industries
  • M&A analysis and pricing
  • Comparing companies with different debt levels
  • Historical valuation trend analysis

When NOT to Use

Scenario Use Instead
EV/EBIT ratio hf_Enterprise_Value_over_EBIT()
Price to earnings hf_Price_to_Earnings_Ratio()
Raw EBITDA value hf_EBITDA()

Common Issues & FAQ

Q: What's a good EV/EBITDA ratio? A: It varies by industry. Generally, 8-12x is considered average, but tech may be higher and utilities lower.

Q: Why use EV/EBITDA instead of P/E? A: EV/EBITDA accounts for capital structure differences and is better for comparing companies with varying debt levels.

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