But the meaning of the ratio increasingly depends on how much EBITDA is adjusted — and how optimistic those judgments are.

Discover the significance of the EBITDA/EV multiple, a key financial ratio for ROI, how it compares to EV/EBITDA, and its impact on evaluating company performance.

Adjusted EBITDA is intended to provide a true picture of a company’s earnings. In M&A deals, companies will often strip out or add back one-time, non-cash expenses, such as restructuring costs, ...