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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). While the nuances differentiating EBITDA and adjusted EBITDA might appear subtle, they play a critical role in financial evaluations, particularly during M&A due diligence or when assessing companies with unusual financial events.

EBITDA 52
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AI technology, a serious threat for Alphabet?

Valutico

During this event, the company also published its fourth quarter results of 2022 showing an increase in revenue by 1% and a worrying decrease in revenues by 8% for the important YouTube segment. Despite this revenue growth, Alphabet was unable to maintain its healthy net profit margin, as net profit fell by around 5% to $75 billion.

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Methods of Business Valuation by Their Profitability

Equilest

In practice, professionals rely on several results, assessed at different levels of the income statement: - the gross operating surplus (EBIT or EBITDA) - net operating surplus (ENE or EBIT) - the Current Result Before Tax (RCAI) - Net Income (NR) - Self-Financing Capacity (CAF) or operating cash flow. EBITDA and EBIT).

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Is BP’s new strategy – full focus on profits – viable in the long term?

Valutico

At this year’s event this goal was reduced by 15%, meaning fossil fuel output will only decrease by 25% by 2030. The Trading Comparables analysis resulted in a valuation range of GBP 98 (USD 199) billion to GBP 137 (USD 166) billion by applying the observed trading multiples EV/EBITDA, EV/EBIT, P/E and P/B.

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Does Mandatory Board Gender Balancing Reduce Firm Value?

Reynolds Holding

Moreover, Norway’s experience with its quota law is relevant to recent events in the U.S. Other than in the financial-crisis year of 2008, there is no statistically significant negative difference in EBIT (on the contrary, regulated firms outperformed the unregulated firms in 2013).

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Material Adverse Effect Clauses

Erik A. Lopez

” Thus, the MAE qualification renders some adverse events irrelevant and non-actionable under the agreement. In both contexts, however, the seller will want to minimize the likelihood of occurrence of an MAE by narrowing which events and circumstances will satisfy the definition, and the buyer will seek to achieve the opposite.

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Valuation Methods for Startups—The Easy Guide to Value a Startup

Valutico

Initial Public Offering (IPO) Significant event allowing the company to sell shares publicly for substantial capital. Established revenue streams; positive cash flow; forecasts focus on scaling and potential market opportunities. Lower: More data and trends available, though external factors still play a role.