EBIT stands for Earnings Before Interest & Tax and is a common indicator of the profitability of a firm.
The calculation is Operating Income + Stock-Based Compensation, or Revenue - Operating Expenses - Depreciation - Amortization.
The reason behind using EBIT is because it allows you to see the profitability of a company regardless of the tax rate or capital structure.
- Capital Structure
- Earnings Before Interest, Taxation, Depreciation & Amortization (EBITDA)
- Equity Value
- Interest Expense
- Interest Income
- Interest Rate (IR)
- Operating Income
- Trading Multiple