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Home Resources Glossary EBIT

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EBIT

A measurement of the operating profit of a company. It stands for earnings before interest and taxes.

Tips

E = Earnings, B = Before, I = Interest, T = Taxes.

Related Resources

EBITDA | Definition, Formula & Example – A Complete Guide

Seller’s Discretionary Earnings (SDE) | Definition & Examples

Should I use SDE or EBITDA to value a business?

Related Terms

Earnout

An agreement whereby the buyer pays part of the purchase price to the seller based on the future performance of the company, or the fulfillment of some other specified event....

EBITDA

A measurement of the cash flow of a company which includes earnings before interest, taxes, depreciation, and amortization. See Also Cash flow, EBIT, net income, SDE. Tips EBITDA stands for...

Employee Stock Ownership Plan (ESOP)

An equity plan established by a company that permits the grant of options on stock of the company as long-term incentive compensation for employees. See Also Management Buyout (MBO). Tips...

Enterprise Value (EV)

A measurement of a company’s total value, calculated as equity minus cash plus outstanding debt. See Also Book value, fair market value, market value. Tips Enterprise value is one of...

Entity

A separate, legal entity authorized to act separately from its owners, such as a C Corporation, S Corporation, or LLC. See Also C Corporation, S Corporation, Limited Liability Company (LLC)....

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Glossary

EBIT

See Also

Tips

Related Resources

Related Terms

Earnout

EBITDA

Employee Stock Ownership Plan (ESOP)

Enterprise Value (EV)

Entity

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