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Tell me why Price / EBIT is an inappropriate metric but Price / Earnings is appropriate?

I don't understand the answer to this question, will someone please explain?

6,333 WSO Academy Investment Banking Session Reviews: 4.82/5

Class of '21 Jul 2026 Cohort

5.00/5

Investment Banking Mock Interview

“He is insightful, thoughtful, and genuinely invested in helping his students succeed. His experience at a firm I’m targeting makes his guidance especially valuable, and I look forward to continuing to learn from him and getting to know him personally.”

Class of '28 Jun 2026 Cohort

5.00/5

Investment Banking Short Resume Review / Recap

“My mentor got on at 4 AM to make the session work with my schedule, which says a lot about how much he cares about helping students. He walked through every single point I brought, never rushed me, and made sure I actually understood each one before moving on. He was patient and direct, and he gave me honest feedback when something needed work. I left the call with a clear plan and a lot more confidence than I had going in. I would absolutely book with him again and recommend him to anyone looking for real, practical guidance.”

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Authored by: Certified Investment Banking Professional - 1st Year AnalystCertified Investment Banking Pro

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