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EV/EBIT

Enterprise value divided by trailing operating income (EBIT). A capital-structure-neutral multiple that values the whole business (equity plus net debt) against its operating profit, so it compares cleanly across companies with different leverage. Not-meaningful when trailing EBIT is zero or negative.

Formula

Enterprise value ÷ TTM EBIT

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Related terms

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Metrics on this page are computed by Moatkeep from reported filings and market data and are estimates: they depend on modelling choices (e.g. period alignment, share counts, currency) and on the underlying data being correct. Definitions are in the glossary. Figures are not investment advice — see the full disclaimer.

EV/EBIT — definition | Moatkeep