EBIT

EBIT is an abbreviation that stands for Earnings Before Interest and Tax. It is similar to EBITDA but misses out Amortisation.

EV/EBIT

EV/EBIT is an acronym for enterprise value divided by earnings before interest and tax. This is a ratio that is often used to value businesses.

EV/EBITDA (or EBITDA Multiple) is a valuation tool that looks at how a company’s cash flow compares to the assets being used to generate the cash flow and is simply EV (or Enterprise Value) divided by EBITDA (earnings before interest, tax, depreciation and amortisation). Investors mainly use a company’s enterprise multiple to determine whether a company is undervalued […]

EBITDA

EBITDA is an abbreviation that stands for Earnings Before Interest, Tax, Depreciation and Amortisation. It is a close approximation for the cash generated by a company before it pays any interest and tax bills that it owes. It is useful as a profitability measure, although it doesn’t tell the whole story.

Earnings – of a company

Earnings are the amount of profit that a company produces during a specific period. Its important because it gives investors and idea of how a company has performed in terms of profit generation over that time period, given the market conditions during that time. From there, one can see how the company may handle similar […]

Free Cash Flow

Free Cash Flow is the cash generated by a business that is available after all expenses. from a debt investor’s point of view, it can be calculated by taking the EBIT (earnings before interest and tax), taking off tax payable and deducting capital expenditure and any change to working capital. For an ordinary shareholder, it’ll […]

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EBIT