Enterprise Value Over EBIT (Historical)

Returns the historical Enterprise Value to EBIT ratio. This valuation metric shows how many times EBIT the market values the entire enterprise.

Formula

EV/EBIT = Enterprise Value / Earnings Before Interest and Taxes

Parameters

Parameter Required Description
Symbol Yes Stock ticker symbol
Year Yes Fiscal year or period code
Quarter No Quarter 1-4
TTM No "TTM" for trailing twelve months

Interpretation

  • Lower EV/EBIT may indicate undervaluation
  • Higher EV/EBIT may indicate growth expectations or overvaluation
  • Compare within same industry for meaningful analysis

Examples

=hf_Enterprise_Value_over_EBIT("AAPL", 2023, 4)
Q4 2023 EV/EBIT
=hf_Enterprise_Value_over_EBIT("MSFT", "ly")
Last year EV/EBIT
=hf_Enterprise_Value_over_EBIT("GOOGL", 2023, , "TTM")
TTM EV/EBIT

When to Use

  • Valuation analysis across periods
  • Comparing enterprise value multiples
  • Assessing acquisition targets
  • Industry comparison analysis

When NOT to Use

Scenario Use Instead
EV/EBITDA ratio hf_Enterprise_Value_over_EBITDA()
Price to earnings hf_Price_to_Earnings_Ratio()
Raw enterprise value hf_Enterprise_Value()

Common Issues & FAQ

Q: What's the difference between EV/EBIT and EV/EBITDA? A: EV/EBIT includes depreciation and amortization expenses, making it more conservative. EV/EBITDA excludes them.

Q: Why is my EV/EBIT negative? A: Negative EBIT (operating loss) will produce a negative ratio.

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