EV/EBITDA Explained: A Key Valuation Multiple for Investors
Valutico
MAY 19, 2025
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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