S&P 500 Enterprise Value to EBITDA (TTM)

Live value temporarily unavailable.

Source: Company filings (aggregated)

Data updated daily

What it measures

The S&P 500 EV/EBITDA ratio measures the aggregate enterprise value of index constituents relative to their aggregate trailing-twelve-month EBITDA (earnings before interest, taxes, depreciation, and amortization). A reading of 14x means the market is valuing the aggregate index at 14 times its annual operating cash generation before non-cash charges.

Why it matters

EV/EBITDA is often preferred over P/E for cross-sector comparisons because it is capital-structure-neutral — enterprise value includes debt, so the ratio is not distorted by differences in leverage between sectors. It also adds back non-cash depreciation and amortization charges, making it less sensitive to accounting choices around asset life assumptions. As a proxy for the multiple a private acquirer would pay for the aggregate business, it anchors equity valuations to corporate transaction activity. High EV/EBITDA readings historically have preceded periods of lower forward returns, particularly when accompanied by rising interest rates that increase the discount rate applied to enterprise value.

How it is calculated

EV/EBITDA (TTM) = Σ Enterprise Value ÷ Σ TTM EBITDA

LENSE computes the S&P 500 EV/EBITDA as a market-capitalization-weighted aggregate. Enterprise value per constituent is computed as market cap plus total debt minus cash and equivalents, sourced from the most recently reported quarter-end balance sheet. TTM EBITDA is constructed by summing the four most recently reported fiscal quarters of operating income plus depreciation and amortization using as-reported figures. Constituents with negative TTM EBITDA are excluded from the denominator. Market capitalization is computed daily from constituent share counts and closing prices. Index constituency is resolved point-in-time via the S&P 500 point-in-time index constituency.

Recent (monthly)

Recent data unavailable.

Data source: Company filings (aggregated). Computed and published by LENSE Analytics.