Equity Valuation
Enterprise Value to EBIT
Definition
What is Enterprise Value to EBIT?
Enterprise valueThe value of a company's operations attributable to debt and equity investors, commonly market capitalisation plus net debt and other claims. divided by operating profitProfit from core operations after operating expenses but before financing costs and tax. before interest and tax.
Example in practice
How This Looks in Practice
The ratio compares operating value with EBIT across capital structures.
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Related Terms
Equity Valuation
Earnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.
Equity ValuationDiluted Earnings Per Share
Earnings per share assuming potentially dilutive securities convert into ordinary shares.
Equity ValuationBasic Earnings Per Share
Earnings per share calculated using actual weighted average ordinary shares outstanding.
Cash Flow AnalysisOperating Cash Flow
Cash generated or used by a company's core operations.