EV/EBITDA Calculator
The standard multiple for peer comparisons and takeovers.
Inputs
Market capitalization
Also called: Market cap, MVE (market value of equity)
Where to find it: Shown prominently on any stock overview page.
How to derive: Share price × shares outstanding.
Total debt
Also called: Interest-bearing debt, borrowings
Where to find it: Balance sheet: short-term + long-term borrowings (bonds, loans).
How to derive: Add short-term and long-term interest-bearing debt.
Cash & equivalents
Also called: Cash, liquid assets
Where to find it: Balance sheet, top of current assets.
How to derive: Cash + bank deposits + short-term investments.
EBITDA
Also called: Earnings before interest, taxes, depreciation & amortization
Where to find it: Often listed directly; otherwise derive from the income statement.
How to derive: EBIT + depreciation & amortization (D&A).
Result, live
Industry-dependent: software carries higher multiples than steel. Careful with capital-intensive firms - EBITDA ignores depreciation.
EV/EBITDA is the multiple professionals reach for first when comparing companies or pricing a takeover. It divides enterprise value — the price of the whole business including debt — by operating earnings before depreciation and amortization. This calculator does both steps in seconds.
How the formula works
First build enterprise value from market cap, debt and cash. Then divide it by EBITDA — earnings before interest, taxes, depreciation and amortization. Because both figures are capital-structure-neutral, the multiple compares fairly across firms with very different debt levels.
EV/EBITDA = EV ÷ EBITDA
Example: Market cap $10,000m, debt $3,000m and cash $1,200m give an EV of $11,800m. With $1,500m EBITDA, EV/EBITDA = 11,800 ÷ 1,500 = 7.9× — cheap, below the typical 8× line.
How to read the result
- Below 8× — cheap; a common threshold for value in mature industries.
- 8 to 12× — the market-average band for most companies.
- Above 12× — rich; only strong growth or high margins justify it.
What to watch out for
- EBITDA ignores capex. For capital-heavy firms — telecoms, steel — it flatters reality; the machines still wear out.
- Industry sets the bar. Software routinely trades above 15×, utilities below 8×.
- Adjusted EBITDA can be gamed. Watch how many one-off costs a company adds back.
EV/EBITDA by sector
EV/EBITDA only means something next to the company's own sector: capital-intensive sectors trade at low multiples, fast-growing ones at high multiples. The table shows median and range for every sector from our database, updated daily.
| Sector | Lower quartile | Median | Upper quartile | Stocks |
|---|---|---|---|---|
| Energy | 3.9 | 6.5 | 11.0 | 741 |
| Consumer Staples | 4.4 | 7.8 | 12.6 | 1,239 |
| Communication Services | 4.6 | 8.0 | 14.5 | 687 |
| Consumer Discretionary | 4.7 | 8.3 | 14.7 | 2,611 |
| Materials | 4.8 | 8.6 | 15.1 | 2,244 |
| Financials | 5.2 | 9.1 | 15.3 | 2,103 |
| Utilities | 6.1 | 9.1 | 13.3 | 557 |
| Industrials | 5.7 | 10.5 | 19.1 | 3,838 |
| Health Care | 7.1 | 12.7 | 20.7 | 1,400 |
| Real Estate | 7.2 | 13.0 | 19.3 | 1,274 |
| Information Technology | 7.8 | 15.1 | 30.6 | 2,135 |
Source: the Fair Value Calculator database, 18,829 stocks with a valid value for EV/EBITDA, as of Sep 5, 2026. Median: half of the sector's stocks sit below it. Lower and upper quartile: 25 % sit below or above. Values move daily with prices. All valuation ratios by sector →