This Earnings Before Interest and Taxes (EBIT) is an educational resource that will lay out the steps on how to calculate EBIT, which is also referred to operating profit. EBIT typically represents the amount of money that the company generated from its operations, without the impact of interest and taxes expenses. It is a good metric to compare companies which are under different tax regime. EV/EBIT is used to measure the price of the stock relative to its earnings, and the metric is typically compared across industry peers.
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