EV/EBITDA stands for Enterprise Value to Earnings before Interest, Taxes, Depreciation and Amortisation (and Exceptionals).
The denominator, Enterprise Value is calculated as Market Cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents.
EV/EBITDA is similar to - and often used in conjunction with - the PE Ratio to value a company but is arguably a better ratio for comparable multiples analysis. This is because EV is capital structure-neutral in that it includes debt.
Furthermore, EBITDA measures cash earnings without accrual accounting, cancelling tax-jurisdiction effects, and cancelling the effects of different capital structures. It is purely driven by the business operations of the company whereas the PE multiple can be impacted by non-business factors of a discretionary or non-recurring nature.