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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?

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

Equilest

Definition: Free Cash Flow to Firm (FCFF) represents the surplus cash generated by a company's operations, available after covering expenses and necessary investments. Its calculation involves the subtraction of capital expenditures, changes in working capital, and taxes from the company's Earnings Before Interest and Taxes (EBIT).

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Material Adverse Effect Clauses

Erik A. Lopez

In this post on The M&A Lawyer Blog, I will: introduce the concept of Material Adverse Effect and explain its principal functions, present pro-buyer and pro-seller versions of MAE definitions and explain how, and why, they differ, including with respect to forward-looking language and common qualifications, and.

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Data Update 1 for 2023: Setting the table!

Musings on Markets

By the same token, it is impossible to use a pricing metric (PE or EV to EBITDA), without a sense of the cross sectional distribution of that metric at the time. For example, I have seen it asserted that a stock that trades at less than book value is cheap or that a stock that trades at more than twenty times EBITDA is expensive.

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How to Value a Website or Internet Business in 2022

FE International

That is, were the companies in those transactions valued as a multiple of EBIT , EBITDA , revenue, or some other parameter? In a public company setting this tends to manifest as P/E multiples as well as EV/EBITDA and EV/Sales or other iterations of these core metrics. Earnings-Multiple. Factors That Influence The Multiple.

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North American Construction Group Announces Transformative Acquisition of MacKellar Group, A Leading Private Australian Heavy Equipment Solutions Provider

Benzinga

ACHESON, Alberta, July 26, 2023 (GLOBE NEWSWIRE) -- North American Construction Group Ltd. (" NACG " or the " Company ") (TSX: NOA ) today announced that it has entered into a definitive purchase and sale agreement to acquire (the " Transaction ") MacKellar Group (" MacKellar ") for an estimated $395 million (the " Consideration ").

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Earnings and Cash Flows: A Primer on Free Cash Flow

Musings on Markets

While I understand that there is no one overriding definition of cash flow that trumps others, it is essential that we define what we mean when we talk about free cash flows, and get perspective on what companies look like, on these cash flow measures. What is Free cash flow (FCF)?