EBIT vs. EBITDA - which is More Common for the DCF Model?
Equilest
DECEMBER 3, 2022
EBIT and EBITDA are two measurements of business profitability. Evaluating companies using the DCF (Discounted Cash Flow) method requires capitalizing the Free Cash Flows to the firm (FCFF) at the appropriate discount rate. - Both EBIT and EBITDA are indicators of the firm's profitability. .
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