EV to EBITDAR

Enterprise value adjusted for capitalised rent, divided by EBITDA before rent. It exists so that a company which leases its aircraft or its stores can be compared with one that owns them.

A carrier with ₹13,020 crore of enterprise value, ₹1,320 crore of capitalised leases, ₹1,340 crore of EBITDA and ₹240 crore of rent trades at 9.08 times.

The accounting change that brought leases onto the balance sheet has reduced the need for this construction, since the liability and the depreciation are now visible. It still matters for historical comparisons that straddle the transition, and where operating lease treatment differs across jurisdictions.

Airlines and hotel operators are where it is standard.