The Enterprise Value EBITDA formula is a set of calculations used to determine the true value of a company. It takes into account a variety of financial metrics, including earnings before interest, tax, depreciation and amortization (EBITDA). This figure gives an accurate picture of a company’s profitability and is used by investors and analysts to make informed decisions about potential investments or spending. The basic calculation looks at a company’s enterprise value and divides it by its EBITDA. The result shows how much it would cost to purchase the entire company using its current income minus expenses. In other words, it provides investors with an estimate of the real worth of a business.