A commonly used multiple utilized in comparable company analysis is: P/EBITDA Total Debt/Interest Expense P/EBIT EV/EBITDA 

Below are some of the explanations on the above listed multiples:

1. P / EBITDA = This multiple shows the ratios between the Price and EBITDA. Here price of the company is nothing but the Market Capitalization or the Price of Common Equity of the company. Thus, this multiple shows the relationship between the value of equity and EBITDA which is not a correct measure at all. This is because, EBITDA is the residual from the sales after accounting for cash operating expenses. Thus, this residual belongs to both equity holders and debt holders. This is because we haven't subtracted the interest paid to debt holders yet from the EBITDA. So, this multiple is wrong in its essence as we are comparing apples with mangoes.

If this multiple is to be used, an identical firm can get larger price just because of the presence of debt in its capital structure.  

2. Total Debt / Interest Expense: This multiple shows the relationship between value of debt and the interest expense. This multiple is correct but we can't use it in comparables transaction due to following reasons:

a. This multiple might not be valid if the credit worthiness of the firm is not the same. Also, if a firm has higher debt in its capital structure than average, then still it might not be useful. But still those are the variables which can be controlled for. Below is the major reason for this multiple not much useful.

b. This multiple would tell the value of debt of the company. But if we are buying a company, we need to find out the whole value of company i.e. value of debt and value of equity combined. Thus, this multiple would not provide any true meaning to valuation.

3. P / EBIT = This multiple shows the ratios between the Price and EBIT. Here price of the company is nothing but the Market Capitalization or the Price of Common Equity of the company. Thus, this multiple shows the relationship between the value of equity and EBIT which is not a correct measure at all. This is because, EBIT is the residual from the sales after accounting for operating expenses. Thus, this residual belongs to both equity holders and debt holders. This is because we haven't subtracted the interest paid to debt holders yet from the EBIT. So, this multiple is wrong in its essence as we are comparing apples with mangoes.

If this multiple is to be used, an identical firm can get larger price just because of the presence of debt in its capital structure.

4. EV / EBITDA: This multiple shows the ratios between the Enterprise Value and EBITDA. Here Enterprise Value of the company is nothing but the total of the value of debt and the value of equity. Thus, this multiple shows the relationship between the value of company and EBITDA which is a correct measure as it is not consistent like other multiples. The numerator is also for the both equity and debt and denominator is also for the both.

Also since this multiple would tell us the combined value of firm, it would be much more useful and that is the most popular reason of using it.

Thus, as discussed above, only last multiple is useful and that is mostly used in the comparable company analysis. Thus, option 4. i.e. EV / EBITDA is correct.