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EBIT vs. EBITDA - which is More Common for the DCF Model?

Equilest

EBIT and EBITDA are two measurements of business profitability. This article will discuss two accounting terms used to build the FCFF - EBIT and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Both EBIT and EBITDA are indicators of the firm's profitability. . What is EBIT? Let's discuss. . .

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Amortization in accounting 101

ThomsonReuters

Amortization in accounting is a technique that is used to gradually write-down the cost of an intangible asset over its expected period of use or, in other words, useful life. This shifts the asset to the income statement from the balance sheet. What are intangible assets? What is an amortization schedule?

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Company Valuation Methods—Complete List and Guide

Valutico

This is accomplished through methods like Comparable Company Analysis, Precedent Transaction Analysis, and Market Capitalization, which collectively offer insights into the company’s value within the context of the broader market landscape. A lower EV/EBIT ratio indicates a potentially better value for investors.

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29 Valuation Interview Questions and Answers: Mastering the Art of Crackling Interviews

Equilest

Dive into the nuances of industry-specific multiples, grasp the challenges of valuing intangible assets, and discover the evolving landscape of incorporating Environmental, Social, and Governance (ESG) factors into the valuation framework. One key emphasis is on the Price to Book Value multiple.