Enterprise Value to EBIT (EV/EBIT)

Enterprise Value to EBIT (EV/EBIT) is a financial metric used to measure the value of a company in relation to its earnings before interest and taxes (EBIT). It is a ratio that compares a company's enterprise value (EV) to its EBIT.

The enterprise value of a company is calculated by adding the market capitalization of the company, its debt and subtracting cash and cash equivalents. EBIT is a company's earnings before factoring in interest and taxes.

EV/EBIT is useful in evaluating the financial performance of a company relative to its market value. It can help investors to compare companies in the same industry, as it removes the effects of different capital structures and tax rates. A higher EV/EBIT ratio suggests that the company is overvalued, while a lower ratio indicates that the company may be undervalued.

Additional Details

Metric Name	Type	Default Period Type
ev_to_ebit	fin_metric	FY

Formatting Details

Data Format	Display Format	Unit
float	number	multiple