Sunday, 8 November 2026 Weekly snapshot · Not investment advice standard-equity.report
Valuation
EV/EBIT
Enterprise value divided by operating profit.
Definition
EV/EBIT compares the value of the entire business (equity plus debt minus cash) to its operating profit. Cleaner than P/E because it isn't distorted by capital structure or non-operating items.
Formula
Enterprise Value ÷ Operating Profit
Why it matters
EV/EBIT is the multiple credit investors and acquirers usually look at first, because it values the whole business — debt and equity together — against the cash flow available to all capital providers. Very useful for comparing companies with different debt loads.
How Standard Equity uses it
Shown in the main table. For banks, insurers and broker-dealers the table shows Price-to-Tangible-Book (P/TBV) instead.
The metric
| Category | Valuation |
|---|---|
| Unit | x |