EV/EBITDA Value
EV/EBITDA < 8, EBITDA margin > 10%, low leverage.
EV/EBITDA compares the price of the whole business, debt included, with its operating earnings before depreciation. Acquirers and private equity firms use it because it puts companies with different amounts of debt on the same footing. Under 8 is cheap for most industries.
EBITDA ignores capital spending. Oil producers and shippers often look cheap on it because they spend heavily just to keep output flat.