There are a range of multiples that can be used EV divided by revenues often used for unprofitable or very fast growing companies So start up industries, this will be more common EV/EBITDA and EV/EBIT are very common but EV/(EBITDA-Capex) used for very capital intensive companies If we were just to take EBITDA, we would be ignoring a major outflow of the company EV divided by free cash flow, this focuses on cash generation Really good for mature firms, where actually the amount of cash that can be returned to financiers is actually very large The P/E multiple is widely use but it's heavily impacted by capital structure Two extremely similar companies but one with lots of debt and one with lots of cash will have extremely different P/E multiples Now the PEG multiple (your P/E divided by G), this is used to try and compare companies with different growth rates So a company with a very high growth would tend to have a very high P/E, a low growth company would tend to have a low P/E multiple We can try and cut through those differences by taking the P/E divided by G Taking the share price divided by book value or price divided by book value is used for balance sheet driven companies This is very common with real estate, banks and insurance But also commodity industries (oil and gas), where the value of the business very much driven by the amount of assets they own I.e. oil and gas in the ground You can then get onto much more specific multiples, so for instance hotel companies might use EV/rooms Publishers or cable companies could use EV/Subscribers, and there are other multiples which are very specific to industries