Noble Roman's Pizza Inc (NROM)

[bradford86]

EBITDA* Earnings before interest tax depreciation and amortization

EV/EBITDA is basically the gold standard for valuing businesses. There are obviously shortcomings. The reason EV/EBITDA is better than P/E is because it is capitalization structure neutral, that is to say that when you have a company that is heavily indebted, this shows up on EV/EBITDA and does not show up on P/E.

EV/EBITDA annualized Joel Greenblatt 40% for 20 years.