RE:EBITDA vs EBIT Stocks are valued based on forward cash flows, dumbass. Adjusted ebitda or adjusted ebit is calculated to remove items that are not likely to recur. The $5 million stock comp expense in 2021 is not going to be as high going forward. Also $1.6 million amort of intangibles should be removed because the original cash cost will not recur.Therefore adjusted EBIT for 2021 is positive.
Carlito3311 wrote: The company posted negative EBIT for the year. EBITDA is generated solely by adding back D&A, SBC and acquisition costs:
D&A - 17,786
SBC - 4,952
ACQ - 233
TOTAL - 22,971
Reported Adj EBITDA was 21,371...so add backs of those 3 items account for all the EBITDA...so all these analyst multiples of 10-13x are really not multiples of operating earnings but rather, multiples of D&A, SBC and acquisition costs...
Look at a company like Apple - their EBIT is 90% of their EBITDA...high quality.