EBIT multiple or EBITDA multiple
What determines whether an industry uses the EBIT multiple versus the EBITDA multiple?
I've heard that for capex heavy industries, EBIT is used more often since the depreciation in part covers the capital expenditures. However, woudldn't it be better to use an EBITDA - Capex multiple in this case?
When is the EBIT multiple better than the EBITDA multiple?
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