Companies with risk and growth have high M$/$B ratios. M$/$B ratios typically exceed $,$ which means that investors are willing to pay more for stocks than their accounting book values. Unlike the P$/$E and M$/$B ratios, the EV$/$EBITDA ratio looks at the relative market value of all the company$$s key financial claims. The EV$/$EBITDA ratio heavily influenced by the company$$s debt and tax situations.

Enterprise value $=$ Market value of equity $+$ Market value of total debt $+$ Market value of other financial claims $$ Cash and equivalents.