An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax and interest. EBIT is also referred to as "operating earnings", "operating profit" and "operating income", as you can re-arrange the formula to be calculated as follows:
EBIT = Revenue - COGS- Operating Expenses
Also known as Profit Before Interest & Taxes (PBIT), EBIT equals Net Income with interest and taxes added back to it.
Can I call EBIT a venture valuation formula?
