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EV/EBITDA Screener — Enterprise Value to EBITDA by Sector
60 mid and large-cap stocks ranked by EV/EBITDA, sorted lowest first so the cheapest names relative to earnings power rise to the top. Filter by sector and read each multiple against its peer benchmark to shortlist candidates for deeper valuation work.
Why EV/EBITDA Beats the P/E Ratio for Comparison
The price-to-earnings ratio only looks at the equity slice of a company and is distorted by how much debt it carries and how it is taxed. EV/EBITDA fixes both problems. Enterprise value adds net debt back to the market cap, so it measures what it would cost to buy the entire business — equity and debt alike. EBITDA strips out interest, taxes, depreciation and amortization, leaving a cleaner picture of operating earnings power. The result is the closest thing to an apples-to-apples multiple you can put on two companies with very different balance sheets.
That is why this screener sorts ascending — lowest multiple first. A company trading at 6x EV/EBITDA is being valued at six years of its operating earnings, while one at 25x is priced for a decade or more of growth. Neither is automatically right or wrong, but the low end of the list is where value investors start hunting for businesses the market may have overlooked.
Read the Multiple Against Its Sector
An EV/EBITDA number means little in isolation. Different industries carry structurally different multiples because they grow at different rates and reinvest different amounts of capital. Software and technology businesses commonly trade at 15–25x because investors pay up for recurring revenue and high margins. Industrials cluster near 8–15x, consumer businesses around 10–18x, and capital-intensive, cyclical energy names often sit at 4–8x. A 9x multiple is cheap for software and rich for an oil producer. Always use the sector filter to compare within a peer group.
How to Use This Screener to Find Ideas
Start with the default ascending sort to see the lowest multiples first, then use the sector filter to narrow to one peer group. Within a sector, the names at the top of the list trade at the cheapest multiples — a starting point, not a verdict, because a low multiple can also signal a shrinking business or a broken thesis. Click any ticker to open its full Basis Report stock page for margin trend, balance sheet, and earnings quality. Pair this screener with the EV/EBITDA Calculator to run the multiple on a single ticker and with the DCF Calculator to test whether the cash flows justify the price.
Frequently asked questions
How is EV/EBITDA calculated?
EV/EBITDA = enterprise value ÷ EBITDA. Enterprise value is market capitalization plus total debt minus cash and equivalents. EBITDA is earnings before interest, taxes, depreciation and amortization. Dividing the two gives a multiple that values the entire business against its operating cash earnings.
What is a good EV/EBITDA ratio?
It depends entirely on the sector and growth rate. Technology companies often trade at 15–25x, industrials around 8–15x, consumer names near 10–18x, and energy producers at 4–8x. A multiple that looks cheap in one sector can be expensive in another, so always compare against direct peers rather than an absolute benchmark.
Why is EV/EBITDA better than the P/E ratio?
The P/E ratio only reflects equity value and is skewed by leverage and tax rates. EV/EBITDA includes debt in the enterprise value and removes interest, taxes, depreciation and amortization from earnings, so it compares two businesses on the value of the whole company. That makes it far more reliable for comparing companies with different capital structures.
Does a low EV/EBITDA always mean a stock is cheap?
No. A low multiple can reflect genuine undervaluation, but it can also signal falling earnings, structural decline, or high risk that the market is pricing in. Always pair a low multiple with an assessment of growth, margins, and balance-sheet health before concluding a stock is a bargain.
What are the limits of EV/EBITDA?
EBITDA ignores real costs — capital expenditure, working capital, and stock-based compensation — that ultimately consume cash. Two companies with identical EV/EBITDA can have very different free cash flow if one is far more capital-intensive. Use it as a first screen, then move to free cash flow and DCF for the full picture.
How do I use this screener alongside the DCF Calculator?
This screener surfaces the cheapest businesses by EV/EBITDA within each sector. Once you have a shortlist, use the EV/EBITDA Calculator to run the multiple on a single ticker and the DCF Calculator to discount its cash flows to an intrinsic value. A low multiple is most convincing when a DCF confirms the underlying cash flows support it.