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Glossary

EV/EBIT

The value of the whole company divided by operating profit before interest and taxes.

What it is

The value of the whole company divided by operating profit before interest and taxes. Shown on the stocks pages.

How Dados B3 calculates it

enterprise value ÷ the year's EBIT (only when EBIT is positive).

Example

Illustrative example, with made-up numbers to keep the arithmetic easy: Enterprise value R$ 1 billion and EBIT of R$ 125 million: EV/EBIT = 1,000 ÷ 125 = 8.

What to watch for when reading it

• Unlike EV/EBITDA, depreciation has already been deducted here; it suits businesses that spend heavily replacing equipment.
• It does not apply to banks and insurers.

See also

• EV/EBITDA
• EBIT
• Enterprise value (EV)

Methodology · All indicators

Educational content to understand what each number means. It is not a recommendation to buy or sell.