Trending Content - Investment Banking Forum
| +273 | Earliest you can get fired | 58 | 1d |
| +258 | Investment Banking is Divine | 40 | 1d |
| +219 | Another $115bn Mega deal for these banks. Congrats! | 45 | 1d |
| +216 | US 2027 SA IB worried about background check | 53 | 1d |
| +206 | Analyst: Why is UBS IB doing worse than peers?, UBS CFO: No Comment | 41 | 2d |
| +206 | Leaked Interview Questions to Recruiting Services | 61 | 2d |
| +138 | Is UBS really that bad? | 39 | 4h |
| +40 | Is Houston SA 28 recruiting already over? | 34 | 22h |
| +27 | FIG Pigeonholes you - is it true? | 8 | 1d |
| +27 | 2026-27 IB Energy Top Banks | 8 | 1d |
Career Resources
You would value using EBIT if you believe that the D&A is more indicative of the capital intensity of the business over the long run (as D&A is a product of capex spending over many years).
This contrasts to (EBITDA - Capex) which only represents the capital intensity in that given period and not the historical capital expenditure (represented by D&A).
If you believe that the company is coming out of a highly capital intensive period and will reduce investment going forward, then (EBITDA - Capex) may be a superior EV multiple to use to demonstrate the capital intensity of the business.
It’s also used as a more objective measure given the myriad of assumptions that are made to depreciation (salvage value, useful life) that impact the D&A line.
Voluptatem ex est officia in saepe aperiam. Et excepturi consequuntur omnis aut. Est deserunt est sint unde quis beatae. Repellendus occaecati harum at doloremque. Reprehenderit eaque sit sunt quo.
Voluptatum dolor voluptatem minima aspernatur molestiae. Fuga aut praesentium nihil eum sequi rem neque ullam. Voluptatum error doloribus nisi dolores molestiae.
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...