EV/EBITDA is one of the most used metrics in finance but not all agree on its usefulness. We first describe how is EV/EBITDA calculated, first enterprise value and then earnings before interest, taxes, depreciation and amortization. Also the pros are discussed where EV/EBITDA shows how a business is actually doing but we also discuss how it can be manipulated and why it is in the interest of Wall Street. I conclude with what Buffett and Munger have said about EV/EBITDA at the last Berkshire shareholder meeting.
EV EBITDA - How To Calculate - Pros And Cons