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Glossary > EV / EBIT

EV / Operating Profit

What does EV / EBIT mean?

EV to Operating Profit (or EV to EBIT) is similar to EV/EBITDA, with which it shares the advantage of valuing a company regardless of its capital structure. It is less commonly used since it doesn't add back depreciation and amortisation. This is calculated on a trailing twelve months basis.