You're interested in buying a professional soccer team. The EV/EBITDA ratio in business is similar to a method you'd use to evaluate the value of this soccer team before buying it.

Enterprise Value (EV): Think of EV as the total price tag of the soccer team. It's not just the market price (like the team's valuation based on its performance and assets) but also includes the team's debts and subtracts any cash the team has. In business, EV is a company's total value, considering its debt, equity, and cash.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): This represents the soccer team's financial performance. It's like looking at the team's earnings from ticket sales, merchandise, and sponsorships, but before accounting for expenses like interest on debts, taxes, and the less tangible costs like player contracts' depreciation.

Ratio Calculation: To calculate the EV/EBITDA ratio, divide the team's EV by its EBITDA. For example, if the team is valued at $100 million (including debts, minus cash) and has an EBITDA of $20 million, the EV/EBITDA ratio is 5 ($100 million / $20 million).

This ratio helps you understand how many years of earnings it would take to pay for the team at its current performance level, disregarding factors like taxes and interest. In business, a lower EV/EBITDA ratio might indicate that the company is potentially undervalued and could be a good investment opportunity, similar to finding a soccer team that's a bargain based on its earnings potential. Conversely, a high ratio might suggest the team (or company) is overvalued.

However, this ratio varies by industry and market conditions, so it's important to compare it with other teams in the league (or other companies in the industry) to get the full picture.