Personally I don’t use EV/EBITDA because it’s usually unrealistic for Property, Plant & Equipment not to be depreciated over time. Sometimes I may look at EV/EBITA if I’m sure that the company can add value to its intangible assets over time. In theory if a company has good management, they may buy a business at a premium to net assets. That premium which is the goodwill is then required to be amortized under Accounting standards but in actual fact, the goodwilll value may actually go up if management can add value to the business and grow profits. Therefore EBITA would be a good earnings indicator to use as the amortization expense is irrelevant.