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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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Company Valuation Methods—Complete List and Guide

Valutico

Asset-based approaches determine a company’s value by evaluating its underlying tangible and intangible assets. These methods encompass Book Value, Liquidation Value, and Replacement Cost Analysis, providing a comprehensive understanding of the company’s value grounded in its assets’ worth and potential.

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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. EV to EBIT: Examines the company's operating profitability relative to its enterprise value.

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Earnings and Cash Flows: A Primer on Free Cash Flow

Musings on Markets

In the last two decades, I have seen free cash flow measures stretched to cover adjusted EBITDA, where stock-based compensation is added back to EBITDA, and with WeWork, to community-adjusted EBITDA, where almost all expenses get added back to get to the adjusted value.