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EV/EBITDA Explained: A Key Valuation Multiple for Investors

Valutico

It is generally not suitable for valuing banks and financial institutions and early stage companies. To determine EBITDA, you can start with a company’s net profit or its operating profit (EBIT). Interest Expense: This represents the cost of borrowing money, such as the interest accrued on bank loans or equipment financing.

EBITDA 52
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Methods of Business Valuation by Their Profitability

Equilest

This multiple is similar, by analogy, to the PER (Price to Earnings Ratio of listed companies). For an explanation of the meaning of these "intermediate management balances", see the article "income statement"; As a first approach, the ENE and EBIT couples and EBITDA and EBITDA can be taken as roughly equivalent. x250% per year.