EV/EBITDA - a better measure of value

Recently, while browsing old posts over at the fool I found this post about about an alternative to the PE ratio that I thought I should log.

The problem with the PE ratio is that it takes no account of how much debt a company has for example.  Olikea suggests that proffessionals now use EV/EBITDA instead (which can be thought of as a fudged PE ratio).

It’s well worth a read, how you go about calculating it is proabbly another matter…