Investment DictionaryEV/EBIT RatioEBIT Multiple
EV/EBIT ratio is identical to EV/EBITDA ratio. The only difference is that EBIT instead of EBITDA is used.
EBITDA differs from EBIT at depreciation and amortization (DA). So EBITDA is larger than EBIT, and is better to use in most cases. The main advantage of EBIT is when we want to see numbers after amortization (for example, if investments in fixed assets have to be not less than amortization of assets).
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