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EBITDA vs. gross profit – A quick overview Gross profit and EBITDA both measure profitability but at different levels of the income statement. Gross profit captures product-level economics after COGS. Is the company profitable after material expenses? EBITDA goes further — it strips out fixed costs, interest, taxes, and D&A to show overall operating profitability. Is the company profitable after variable and fixed costs? Here's how they compare: EBITDA vs. gross profit comp

What is Unlevered Free Cash Flow? Unlevered Free Cash Flow (UFCF) is a company's cash flow available to both capital providers (debt and...

What are EBITDA add-backs? EBITDA add-backs are mainly used in an M&A transaction when the business owner tries to sell his company....

How to answer: Which valuation method gives the highest valuation? The short answer: it depends — but here is the general ranking from highest to lowest: Comparable transactions — includes acquisition premiums paid in competitive bidding processes, systematically pushing valuations higher DCF — highly sensitive to assumptions on growth, margin development, WACC and terminal value, which can push valuations in either direction Comparable companies — forward-looking multipl

Valuation interview questions in Investment Banking interviews are tricky. There are a bunch of valuation methods to keep track of. Your...

To become a top-tier Investment Banking Analyst, mastering Excel shortcuts is critical. All your analytical work is based on Excel. All...