EBIT
AccountingDefinition
Earnings Before Interest and Taxes. Operating income before interest expense. Captures profit from operations regardless of capital structure or tax jurisdiction.
EBIT is part of the EBITDA calculation (subtract D&A from EBIT to get EBITDA). EV/EBIT is sometimes preferred over EV/EBITDA for asset-heavy businesses where depreciation is real.
EBIT is part of the EBITDA calculation (subtract D&A from EBIT to get EBITDA). EV/EBIT is sometimes preferred over EV/EBITDA for asset-heavy businesses where depreciation is real.
Formula
EBIT = Revenue − COGS − Op expenses