Low EV/EBITDA

EV/EBITDA compares the whole value of a company, debt included, with its operating cash earnings. Analysts and private equity buyers prefer it to P/E because it is not distorted by debt or depreciation. This screen lists stocks on the London Stock Exchange with an EV/EBITDA ratio below 6 and a return on invested capital above 10%, so the low multiple is not just a sign of a poor business, cheapest first. LSE prices are quoted in pence, and the list skips thinly traded shares.