EBIT

• Term

  Main definition

• EBIT

  A cash-flow based measurement of the operating profitability of a company. This is an acronym for a company's earnings before interest and taxes. This measure is often used by sophisticated investors as a basis for valuing the company and their investment. One often utilized valuation methodology is based on a comparison of (reasonably comparable) private and public companies' values as a multiple of EBIT.