In my previous video posts in the Forecasting series, I covered importance of historical analysis and how to project financial statements.
I also covered the different variables that we need to forecast based on historical data and the concept of Net Debt level.
Earnings Before Interest and Taxes (EBIT)
In this video, I’ve explained with an example how to calculate EBIT and its year-on-year growth in percentage(%) terms.
EBIT is an essential variable for calculating DCF valuation.
Watch this video and learn the third step in forecasting financial figures.
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