The Enterprise Value to Operating Profit Ratio, or EV / EBIT Ratio, contrasts a company’s Enterprise Value to its EBIT. It is defined as Enterprise Value divided by EBIT. This is measured on a TTM basis.
EBIT stands for Earnings Before Interest and Tax.
It is a measure of a company’s earnings before they adjusted to account for Interest and Tax, which are not related directly to operational performance.
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 measured on a TTM basis.
| Ticker | Name | EV / EBIT | StockRank™ |
|---|---|---|---|
| LON:N91 | Ninety One | -44.78 | 96 |
| LON:ARBB | Arbuthnot Banking | -10.39 | 71 |
| LON:TCAP | TP Icap | -9.97 | 99 |
| LON:STB | Secure Trust Bank | -4.96 | 90 |
| LON:IHP | Integrafin Holdings | -4.63 | 75 |