EV/EBITDA compares enterprise value to earnings before interest, taxes, depreciation, and amortization. In words, it prices the operating firm relative to a cash-earnings-like operating measure before capital structure. Lightly: EV/EBITDA = (Market Cap + Debt + Preferred − Cash) / (EBIT + D&A). Using equity market cap in the numerator while leaving EBITDA unlevered is a common mismatch.