Elon Musk’s X is a lesson in ebitda and ebit-don’ts
Financial Times M&A
MARCH 19, 2025
The number can be tailored to suit the occasion
EBIT vs EBITDA
Midstreet Blog
DECEMBER 2, 2022
If you’re interested in selling your business, you may be doing some research on how businesses are valued. There are lots of misleading theories out there about how to best value a business, including using a multiple of revenue (not good) or a multiple of net profit (even worse).
EBIT 
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EBIT vs. EBITDA - which is More Common for the DCF Model?
Equilest
DECEMBER 3, 2022
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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The EBITDA Myth (The D and A Make a Difference)
Quantive
JUNE 17, 2023
EBIT and EBITDA are two of the many metrics used to help […]
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EBITDA: What’s It Worth?
IBG Business
NOVEMBER 30, 2022
EBITDA: What’s It Worth? Frequently, the answer is tied to a multiple of EBITDA (earnings before interest, taxes, depreciation and amortization), leaving the further question, “What is EBITDA worth as a key factor in value metrics?”. EBITDA is probably the most common approach today. Johnson , M&AMI.
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Bullish Q4 Earnings, Modest Guidance: Can Building Materials Supplier Owens Corning Find the Right Roof?
Benzinga
FEBRUARY 14, 2024
Adjusted EBIT increased 18% Y/Y to $392 million, with margin expanding to 17% from 15% prior year quarter. Adjusted EBITDA rose by. Sales by segments : Composites $514 million (-13% Y/Y), Insulation $931 million (-3% Y/Y), and Roofing $928 million (+16% Y/Y). Adjusted EPS was $3.21, up from $2.49 Full story available on Benzinga.com
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5 Simple Sense-Checks That Vastly Improve Your Business Valuation
Valutico
SEPTEMBER 19, 2022
A useful tip is to check for consistency between the forecast margins and historical margins—EBITDA margin, EBIT margin, and Net Income margin. Hockey stick-like growth in your DCF projections may indicate these projections are not realistic.
Valuation Using Multiples—What Is It and How Does It Work? Core Ideas Explained
Valutico
DECEMBER 15, 2022
The ratio used might be EV/EBITDA, EV/Sales, P/E or another, depending on the valuation performed and the type of business being valued. So another major assumption when adopting this method, is that the type of ratio chosen as the comparison point, such as P/E or EV/EBITDA should be similar across similar firms. .
Your Guide to Valuing a Company Using the Multiples Approach
Valutico
DECEMBER 15, 2022
The ratio used might be EV/EBITDA, EV/Sales, P/E or another, depending on the valuation performed and the type of business being valued. So another major assumption when adopting this method, is that the type of ratio chosen as the comparison point, such as P/E or EV/EBITDA should be similar across similar firms. .
Can Salesforce return to its former lofty heights, after slumping 50% from its all time high?
Valutico
DECEMBER 6, 2022
At the current level Salesforce has a P/E ratio of 100x and an EV/EBITDA ratio of 47x for 2022. This was mainly driven by operating expenses growth exceeding sales growth and thus putting strain on EBITDA margin. Salesforce experienced a terrible year financially in 2022, which explains these very high multiples.
Can Salesforce return to its former lofty heights, after slumping 50% from its all time high?
Valutico
DECEMBER 6, 2022
At the current level Salesforce has a P/E ratio of 100x and an EV/EBITDA ratio of 47x for 2022. This was mainly driven by operating expenses growth exceeding sales growth and thus putting strain on EBITDA margin. Salesforce experienced a terrible year financially in 2022, which explains these very high multiples.
iRobot: Valuation of Amazon’s latest Take-Over
Valutico
AUGUST 16, 2022
The trading comparables approach confirms this view with the median EV/EBITDA, EV/EBIT and P/E multiples applied to the 2023 forecasts producing a valuation range of USD 600 million to USD 1.1 While the current market capitalisation was USD 1.42 billion.
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Breaking Ties: Kraft Heinz Closes Business Operations in Russia
Valutico
APRIL 24, 2023
billion, driven by lower interest expense and lower non-cash impairment losses, offset by lower Adjusted EBITDA, an accrual related to the securities class action lawsuit, and higher supply chain and commodity costs. Adjusted EBITDA decreased 5.8% billion by applying the observed trading multiples EV/Sales, EV/EBITDA, EV/EBIT and P/E.
Breaking Ties: Kraft Heinz Closes Business Operations in Russia
Valutico
APRIL 24, 2023
billion, driven by lower interest expense and lower non-cash impairment losses, offset by lower Adjusted EBITDA, an accrual related to the securities class action lawsuit, and higher supply chain and commodity costs. Adjusted EBITDA decreased 5.8% billion by applying the observed trading multiples EV/Sales, EV/EBITDA, EV/EBIT and P/E.
Anheuser-Busch InBev: Uncorking the success of the brewery giant despite problems with FIFA World Cup 2022 sponsorship deal
Valutico
DECEMBER 19, 2022
The company also was able to increase its EBITDA by 6.5% with an overall EBITDA margin of 35.2%. The Trading Comparables analysis resulted in a valuation range of €98 to €222 billion, by applying the observed trading multiples EV/EBITDA, EV/EBIT and P/E. billion which is an increase of 5.7% compared to last year’s Q3.
Anheuser-Busch InBev: Uncorking the success of the brewery giant despite problems with FIFA World Cup 2022 sponsorship deal
Valutico
DECEMBER 19, 2022
The company also was able to increase its EBITDA by 6.5% with an overall EBITDA margin of 35.2%. The Trading Comparables analysis resulted in a valuation range of €98 to €222 billion, by applying the observed trading multiples EV/EBITDA, EV/EBIT and P/E. billion which is an increase of 5.7% compared to last year’s Q3.
Will the IPO of ABB’s E-Mobility division give the share price a new boost?
Valutico
NOVEMBER 28, 2022
billion with EBIT margin increasing to 16.6% The Trading Comparables analysis resulted in a valuation range of CHF 47 to 83 billion, by applying the observed trading multiples EV/EBITDA, EV/EBIT and P/E. ABB’s order intake rose 4% to CHF 7.9 billion, the company said in its third-quarter press release. from 15.1%
Will the IPO of ABB’s E-Mobility division give the share price a new boost?
Valutico
NOVEMBER 28, 2022
billion with EBIT margin increasing to 16.6% The Trading Comparables analysis resulted in a valuation range of CHF 47 to 83 billion, by applying the observed trading multiples EV/EBITDA, EV/EBIT and P/E. ABB’s order intake rose 4% to CHF 7.9 billion, the company said in its third-quarter press release. from 15.1%
Porsche AG – worth an investment after the recent IPO?
Valutico
OCTOBER 17, 2022
In the fo rmer, we compared Porsche with peers such as BMW, Mercedes-Benz, Ferrari and Ford using thethe EV/EBITDA and the EV/EBIT multiples. We have performed a Trading Comparables analysis and a discounted cash flow using the Flow to Equity Approach. Our result suggests a valuation range of €74 billion to € 96 billion.
Marriott’s Bold Leap into Midscale: City Express Acquisition
Valutico
JUNE 1, 2023
billion and an EBITDA of USD 1.09 billion by applying the observed trading multiples EV/Sales, EV/EBITDA, EV/EBIT and P/E. Recent Financial Performance In Q1 2023, Marriott exceeded market expectations with gross lodging fees reaching USD 1.13 billion, up from last year’s USD 759 million. Marriott’s pipeline grew 2.6%
Oneok shakes up the midstream industry
Valutico
MAY 24, 2023
2022 saw a robust cash and capital structure with a staggering USD 967 million adjusted EBITDA in Q4, up by 14% from the previous year. billion by applying the observed trading multiples EV/Sales, EV/EBITDA, EV/EBIT and P/E. The Discounted Cash Flow analysis produced a value of USD 21.8 billion using a WACC of 10%.
Methods of Business Valuation by Their Profitability
Equilest
MARCH 17, 2022
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).
Company Valuation Methods—Complete List and Guide
Valutico
SEPTEMBER 22, 2023
This method is common in industries where valuations are commonly expressed as a multiple of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) or Earnings Before Interest and Taxes (EBIT). It indicates how much an investor is willing to pay for a company’s operating earnings (EBITDA).
Cameco: Powering the Nuclear Future
Valutico
JULY 7, 2023
billion by applying the observed trading multiples EV/Sales, EV/EBITDA, EV/EBIT, P/E and P/B. The Discounted Cash Flow analysis produced a value of CAD 14.7 billion using a WACC of 8.8%. The Trading Comparables analysis resulted in a valuation range of CAD 6.4 billion to CAD 28.1 and Peninsula Energy Limited.
Devon Energy: Diversifying into Geothermal
Valutico
JUNE 26, 2023
billion by applying the observed trading multiples EV/Sales, EV/EBITDA, EV/EBIT and P/E. The Discounted Cash Flow analysis produced a value of USD 27.1 billion using a WACC of 11.7%. The Trading Comparables analysis resulted in a valuation range of USD 27.1 billion to USD 35.4 Earthstone Energy, Inc. and Northern Oil and Gas, Inc.
After reporting stellar quarterly results, can Visa close the gap to its all time high?
Valutico
FEBRUARY 8, 2023
The Trading Comparables analysis resulted in a valuation range of $257 billion to $296 billion by applying the observed trading multiples EV/EBITDA, EV/EBIT and P/E. The Flow-to-Equity analysis produced a value of $308 billion using a Cost of Equity of 9.2%.
Data Update 1 for 2023: Setting the table!
Musings on Markets
JANUARY 6, 2023
By the same token, it is impossible to use a pricing metric (PE or EV to EBITDA), without a sense of the cross sectional distribution of that metric at the time. For example, I have seen it asserted that a stock that trades at less than book value is cheap or that a stock that trades at more than twenty times EBITDA is expensive.
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Tobacco Leader’s ESG Transformation
Valutico
JUNE 9, 2023
billion to USD 108 billion by applying the observed trading multiples EV/Sales, EV/EBITDA, EV/EBIT and P/E. The Discounted Cash Flow analysis produced a value of USD 212 billion using a WACC of 6.8%. The Trading Comparables analysis resulted in a valuation range of USD 57.2 Scandinavian Tobacco Group A/S and Vector Group Ltd.
Will luxury brand LVMH continue to outpace the stock market?
Valutico
MARCH 9, 2023
The Trading Comparables analysis resulted in a valuation range of €305 billion to €492 billion by applying the observed trading multiples EV/Sales, EV/EBITDA, EV/EBIT and P/E. The Discounted Cash Flow analysis produced a value of €330 billion using a WACC of 9.3%.
AI technology, a serious threat for Alphabet?
Valutico
FEBRUARY 21, 2023
The Trading Comparables analysis resulted in a valuation range of $1,517 billion to $2,344 billion by applying the observed trading multiples EV/EBITDA, EV/EBIT and P/E. The Discounted Cash Flow analysis produced a value of $1,373 billion using a WACC of 9.9%.
Can Boeing turn things around after reporting four consecutive years of financial losses?
Valutico
FEBRUARY 1, 2023
The Trading Comparables analysis resulted in a valuation range of $121 billion to $150 billion by applying the observed trading multiples EV/EBITDA and EV/EBIT. The DCF analysis produced a value of $93.5 billion using a WACC of 8.8%. Combining our DCF and Trading Comparables analysis results in a value range of $93.5
Can Starbucks reinvent itself?
Valutico
JANUARY 9, 2023
The Trading Comparables analysis resulted in a valuation range of $83 billion to $118 billion, by applying the observed trading multiples EV/EBITDA, EV/EBIT and P/E. The Discounted Cash Flow analysis produced a value of $68.6 billion using a WACC of 8%. . For our Trading Comparables we selected similar peers such as McDonald’s, Yum!
Will Home Depot continue to benefit from the COVID-era high DIY demand?
Valutico
NOVEMBER 21, 2022
The Trading Comparables analysis resulted in a valuation range of $202 billion to $231 billion, by applying the observed trading multiples EV/EBITDA, EV/EBIT and P/E. The Discounted Cash Flow analysis produced a value of $230 billion, with a WACC of 8.8%. .
Can Starbucks reinvent itself?
Valutico
JANUARY 9, 2023
The Trading Comparables analysis resulted in a valuation range of $83 billion to $118 billion, by applying the observed trading multiples EV/EBITDA, EV/EBIT and P/E. The Discounted Cash Flow analysis produced a value of $68.6 billion using a WACC of 8%. . For our Trading Comparables we selected similar peers such as McDonald’s, Yum!
Will Home Depot continue to benefit from the COVID-era high DIY demand?
Valutico
NOVEMBER 21, 2022
The Trading Comparables analysis resulted in a valuation range of $202 billion to $231 billion, by applying the observed trading multiples EV/EBITDA, EV/EBIT and P/E. The Discounted Cash Flow analysis produced a value of $230 billion, with a WACC of 8.8%. .
Meta’s Threads: A New Rival to Twitter’s Throne
Valutico
JULY 25, 2023
The Trading Comparables analysis resulted in a valuation range of USD 503 billion to USD 812 billion by applying the observed trading multiples EV/Sales, EV/EBITDA, EV/EBIT and P/E. The Discounted Cash Flow analysis produced a valuation range of USD 370 billion to USD 493 billion using a WACC of 12.9%. Microsoft Corporation.
NVIDIA: Powering the AI Revolution
Valutico
JUNE 15, 2023
The Trading Comparables analysis resulted in a valuation range of USD 60 billion to USD 277 billion by applying the observed trading multiples EV/Sales, EV/EBITDA, EV/EBIT and P/E. The Discounted Cash Flow analysis produced a value of USD 267 billion using a WACC of 13.6%. and Cisco Systems, Inc.
IBM hits pause on human hires
Valutico
MAY 18, 2023
The Trading Comparables analysis resulted in a valuation range of USD 106 billion to USD 235 billion by applying the observed trading multiples EV/Sales, EV/EBITDA, EV/EBIT and P/E. The Discounted Cash Flow analysis produced a value of USD 222 billion using a WACC of 6.4%. and Alphabet Inc.
Is BP’s new strategy – full focus on profits – viable in the long term?
Valutico
MARCH 1, 2023
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. For our Trading Comparables we selected similar peers such as Total Energies, Shell, Chevron and Saudi Arabien Oil Company.
Is the regulatory opening up of China a catalyst for Tencent’s share price growth?
Valutico
JANUARY 5, 2023
billion to HKD 3,905 (USD 501) billion, by applying the observed trading multiples EV/EBITDA, EV/EBIT and P/E. The Trading Comparables analysis resulted in a valuation range of HKD 1,752 (USD 221.5) For our Trading Comparables we selected similar peers such as Alibaba, NetEase and Meta Platforms.
How will bruised Adidas cope with additional bad publicity?
Valutico
NOVEMBER 7, 2022
We came up with this valuation range by using the observed trading multiples EV/EBITDA, EV/EBIT and P/E of peers such as Nike and Puma. . The Trading Comparable analysis shows a completely different picture for the valuation of Adidas, as it suggests a value between €15.6 billion and €26.2 billion to €44.9
Will TotalEnergies keep on outperforming all indices this year?
Valutico
NOVEMBER 14, 2022
Our Trading Comparables analysis produced a valuation range of €178 billion to €222 billion, by applying the observed trading multiples EV/EBITDA, EV/EBIT, P/E and P/B. The Flow to Equity analysis produced a value of €272 billion, with a Cost of Equity of 8.9%.
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Is the regulatory opening up of China a catalyst for Tencent’s share price growth?
Valutico
JANUARY 5, 2023
billion to HKD 3,905 (USD 501) billion, by applying the observed trading multiples EV/EBITDA, EV/EBIT and P/E. The Trading Comparables analysis resulted in a valuation range of HKD 1,752 (USD 221.5) For our Trading Comparables we selected similar peers such as Alibaba, NetEase and Meta Platforms.
Is the regulatory opening up of China a catalyst for Tencent’s share price growth?
Valutico
JANUARY 5, 2023
billion to HKD 3,905 (USD 501) billion, by applying the observed trading multiples EV/EBITDA, EV/EBIT and P/E. The Trading Comparables analysis resulted in a valuation range of HKD 1,752 (USD 221.5) For our Trading Comparables we selected similar peers such as Alibaba, NetEase and Meta Platforms.
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