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EV/EBITDA Explained: A Key Valuation Multiple for Investors

Valutico

To determine EBITDA, you can start with a company’s net profit or its operating profit (EBIT). Unlike manufacturing or retail businesses where interest is a non-operating item below the EBIT line, interest income from loans and interest expense on deposits/borrowings are primary drivers of a bank’s profitability.

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The One Big Beautiful Bill Act & M&A

Harvard Corporate Governance

The OBBBA permanently restores the pre-2022 TCJA limitation on interest expense deductions by applying the 30% limit to an amount that approximates EBITDA, rather than EBIT. But it imposes new limits by excluding from the EBITDA calculation certain foreign-source items of income.

EBIT 113
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Data Update 8 for 2025: Debt, Taxes and Default - An Unholy Trifecta!

Musings on Markets

The picture below lists the scaled versions of debt: Debt to Capital : The first measure of debt is as a proportion of total capital (debt plus equity), and it is this version that you use to compute the cost of capital.

Equity 77
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Forecasting Future Fraud: Q&A With Joanne Horton Of Warwick Business School

Global Finance

Its going to change your equity, your retained earnings, your profits, your earnings per share, your EBIT, your EBITDAall these numbers would change. Because the trouble is, if you change a few numbers in revenue, its going to change a lot of numbers in accounting. And its incredibly difficult.

Start-ups 112
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Data Update 1 for 2025: The Draw (and Danger) of Data

Musings on Markets

EBIT & EBITDA multiple s 5. Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3. Fundamenal Growth in Operating Earnings 3. Revenue Multiples 4. Long term Reinvestment (Cap Ex & Acquisitons) 4.

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Tariffs & The Job Market: How the Trade War Will Affect Finance Internships, Jobs, Deals, and Valuations

Brian DeChesare

Scenario #1 is the worst and could reduce many companies overall EBIT or EBITDA margins by 50%+, Scenario #2 is moderately bad, and Scenario #3 is neutral but unlikely in real life. This is the neutral case.

Finance 64
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What Is EBIT Margin?

Andrew Stolz

Definition of EBIT Margin. EBIT margin stands for Earning Before Interest and Tax margin. The higher the EBIT the better it is for the firm. What is the Formula for the EBIT Margin? EBIT margin is calculated by dividing EBIT by revenue. EBIT margin = EBIT / Revenue . EBIT Margin in Practice.

EBIT 52