The EV/EBITDA ratio is used to compare the total enterprise value of a business to the EBITDA it generates annually. We have highlighted the top nine companies from the Nifty500 that have shown a consistent increase in their EV/EBITDA ratio, based on valuation scans by StockEdge.com.
A consistently rising EV/EBITDA ratio means the company’s valuation is growing faster than its earnings. This may indicate investor confidence in future growth, but it could also suggest the stock is becoming more expensive relative to its earnings—posing a potential risk if earnings growth doesn’t keep pace.