Benchmarks: EV/EBITDA and P/E Ratio

EV/EBITDA: Calculated by dividing Enterprise Value by EBITDA is often used to benchmark the fair market value of a company. Its key benefit over the P/E ratio is that its capital structure-neutral, and, therefore, better at comparing companies with different levels of debt.

Price/EPS: Also knows as P/E Ratio, measures a company's current stock price relative to its per-share earnings.