Hey gurus,
Why do people in Wall Street look at EBITDA all the time when this figure doesn't include a lot of deductions? This figure just looks at the income from operation, but what if the deduction takes out a large chunk of the operating time? Can you say that the company is still doing good?
| +391 | Change My Mind: Banks Shouldn’t Hire Foreigners at All | 109 | 22m |
| +170 | Article - UBS’ Investment Bank Keeps Losing Ground | 34 | 2h |
| +78 | An Exhaustive Guide: How to Solve Every Single Accretion/Dilution Question | 6 | 5h |
| +51 | When to Leave Office as Intern | 5 | 2d |
| +43 | Best IB Group Overall? | 25 | 23h |
| +38 | Don’t work at UBS - UBS Sucks | 5 | 1h |
| +34 | Would you rather be a Touse Squid or a Bouse Mogger in IB | 2 | 2d |
| +31 | What do you say to ppl who don’t know EVR/LAZ/CVP/PJT | 22 | 1d |
| +31 | STEM student lost in London IB recruiting | 17 | 12h |
| +20 | Still recruiting SA'27 | 13 | 10h |
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.
bc the idea is if it is a one-time charge, it doesn't reflect ongoing operations of the business and you should exclude it
It is an easy way to compare companies across industries.
It's also a decent measure of the profit/cash generation capability of a business regardless of capital structure since you exclude interest from debt, D&A from capitalized expenses/assets, and taxes (which are based on legal structure).
Thanks big guys.
Iure ut vitae autem. Qui autem in enim dolorem velit esse omnis. Dolores cum omnis dolorum ut ea tempora non. Sed consequatur deserunt placeat doloribus. Sit sint ipsam ipsam dolores rerum magnam vel. Sit sint et non quia. Aut cupiditate blanditiis repudiandae eos.
Sunt aut voluptas rerum. Aliquid et vitae qui minus ut. Ratione totam qui consequuntur architecto voluptatem dolorem perspiciatis.
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...