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could you explain with few sentences?

Which of the following would have a higher EV/EBITDA ratio: an airline or an auto parts manufacturer? A B IEEE
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Answer #1

Enterprise value to EBITDA will be higher for airlines company because airline sector is a high growth sector and since enterprise value is also based upon taking the value of Debt into consideration for calculation of the entire enterprise value, the airline company would beat the auto part manufacturer because the airline company has a higher amount of debt as well as these companies also trade at a higher multiple, so the EV/EBITDA ratio of airline companies would be higher than auto part manufacturer company.

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could you explain with few sentences? Which of the following would have a higher EV/EBITDA ratio:...
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