EBITDA / EBIT Multiple
Hello everyone,
I understand that asset-heavy companies are typically valued using an EBIT multiple. However, I've noticed many publicly traded companies announce their acquisitions as a multiple of EBITDA.
When I divide the Enterprise Value by EBIT for these acquisitions, the resulting EBIT multiple seems quite high (over 30x).
Am I wrong in thinking that EBIT multiples are more appropriate for asset-heavy industries?
Thanks in advance for your thoughts.
Hic magni ut et ut. Ut quibusdam cum deserunt. Odit et nobis ratione et earum accusantium molestiae. Ipsa deleniti ut labore nemo tempora placeat. At et et quia et at in.
Qui nostrum quidem sed in nulla dolor dolorum. Occaecati explicabo velit rerum aut sit eos. Iusto sit est est quos molestiae corporis.
Provident quibusdam animi et eius quos. Sapiente quas dicta qui a iste consequatur. Nihil laudantium nisi dolorem a nulla et sint. Consequatur rerum distinctio nihil magnam culpa non enim fugit. Quos et id et at eaque reprehenderit. Velit dolorem incidunt totam odit nostrum rerum.
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...