EV to EBITDA

This is the standard multiple in acquisition work because both numerator and denominator ignore capital structure, so a leveraged and an unleveraged company can be compared directly. It also sidesteps differences in depreciation policy and tax regime, which makes cross-border comparison more meaningful. The corresponding blindness is that EBITDA ignores the cost of the assets the business consumes, so capital-intensive companies look systematically cheaper on this measure than they are. Ind AS 116 moved lease costs out of EBITDA, so multiples computed before and after that change are not comparable.