what is enterprise multiple 
enterprise multiple also known as the ev multiple is a ratio used to determine the value of a company the enterprise multiple which is enterprise value divided by earnings before interest taxes depreciation and amortization ebitda looks at a company the way a potential acquirer would by considering the company s debt what s considered a good or bad enterprise multiple will depend on the industry formula and calculation of enterprise multiple enterprise multiple ev ebitda where ev enterprise value market capitalization total debt cash and cash equivalents ebitda earnings before interest taxes depreciation and amortization begin aligned text enterprise multiple frac text ev text ebitda textbf where text ev text enterprise value text market capitalization text total debt text cash and cash equivalents text ebitda text earnings before interest taxes depreciation text and amortization end aligned enterprise multiple ebitdaev where ev enterprise value market capitalization total debt cash and cash equivalentsebitda earnings before interest taxes depreciationand amortization investopedia eliana rodgers