Because both parts include the claims of lenders, EV/EBITDA compares companies with very different debt levels more fairly than P/E. It is used for industrial companies, not banks or insurers.
Formula
EV/EBITDA = enterprise value ÷ EBITDA
EV/EBITDA on the Pakistan Stock Exchange
Across 270 listed companies with the figure, the median is 6.0×.