Dados B3 › Glossary

Glossary

P/EBITDA and P/EBIT

Market value (equity only, no debt) divided by EBITDA or EBIT.

What it is

Market value (equity only, no debt) divided by EBITDA or EBIT. Shown on the stocks pages.

How Dados B3 calculates it

market value ÷ the year's EBITDA; market value ÷ the year's EBIT. They are published only when the denominator is positive.

Example

Illustrative example, with made-up numbers to keep the arithmetic easy: Market value R$ 600 million and EBITDA of R$ 150 million: P/EBITDA = 600 ÷ 150 = 4.

What to watch for when reading it

• It ignores debt: two companies with the same P/EBITDA can carry very different debt. EV/EBITDA fixes that.

See also

• EV/EBITDA
• EBITDA
• EBIT

Methodology · All indicators

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