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.
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