EV to EBITDA Ratio

Calculate the enterprise value over EBITDA ratio, a valuation ratio that measures a company’s total value (including debt and equity) relative to its EBITDA.

This ratio helps investors understand how many times the enterprise value exceeds the company’s EBITDA, providing insights into the company’s debt load and operating performance.

The formula is as follows:

Also known as: EV/EBITDA.

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Calculate the EV to EBITDA Ratio in Python

The EV to EBITDA Ratio is available in the Ratios module of the open-source Finance Toolkit. Install it with:

pip install financetoolkit -U

Then call get_ev_to_ebitda_ratio as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")

ev_to_ebitda_ratio = toolkit.ratios.get_ev_to_ebitda_ratio()

Which returns:

Parameters

get_ev_to_ebitda_ratio accepts the following parameters:

• diluted (bool, optional): Whether to use diluted shares in the calculation. Defaults to True.
• rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
• growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
• lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
• standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
• trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.

Related Valuation Ratios

The Ratios module page introduces the module, and the sidebar lists all of its functions.