What determines whether an industry uses the EBIT multiple versus the EBITDA multiple?
I've heard that for capex heavy industries, EBIT is used more often since the depreciation in part covers the capital expenditures. However, woudldn't it be better to use an EBITDA - Capex multiple in this case?
When is the EBIT multiple better than the EBITDA multiple?
| +327 | Return Rates For Interns Are Falling? | 136 | 38m |
| +146 | Article: Why UBS's Asian M&A bankers are thriving and UBS's American M&A bankers are not | 16 | 2h |
| +121 | I am a drunk MD AMA | 40 | 20h |
| +119 | Evercore > Goldman and I don’t think it’s particularly close anymore | 50 | 9h |
| +86 | UBS Offer Day | 30 | 9h |
| +64 | I hate Wells Fargo | 17 | 6h |
| +57 | An Outsider’s View of RX Banking Out of College | 6 | 6d |
| +51 | Santander IB? | 10 | 2d |
| +49 | No return offer - feeling like a failure is an understatement | 19 | 4h |
| +43 | WF Return offers | 28 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Facere velit ex et. Nesciunt vero ab maiores quia fuga ea.
Ducimus nostrum dignissimos optio labore modi optio nulla. Et possimus ea itaque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...