Enterprise Value-to-EBITDA (EV/EBITDA) is a financial metric used to assess a company's overall value relative to its earnings before interest, taxes, depreciation, and amortization. It helps investors compare companies within the same industry by providing a standardized measure of profitability. A lower EV/EBITDA ratio may indicate that a company is undervalued, while a higher ratio could suggest overvaluation. This ratio is particularly useful in mergers and acquisitions, as it reflects the total value of a business, including debt and equity. By analyzing EBITDA, investors can gain insights into a company's operational efficiency and cash flow potential, aiding in informed investment decisions.