EV to EBIT
Calculate the enterprise value over earnings before interest and taxes (EBIT) ratio, which is a valuation metric that compares a company’s total value (including debt and equity) relative to its earnings before interest and taxes.
The formula is as follows:
\[\text{Enterprise Value to EBIT Ratio} = \text{Enterprise Value} / \text{EBIT}\]EV to EBIT in Python
get_ev_to_ebit is part of the Ratios module of the open-source Finance Toolkit. Install it with:
pip install financetoolkit -U
Then call get_ev_to_ebit as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")
ev_to_ebit_ratio = toolkit.ratios.get_ev_to_ebit()
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AAPL | 27.682 | 18.274 | 26.671 | 31.9683 | 31.3091 |
| TSLA | 179.531 | 30.11 | 84.6508 | 151.431 | 284.285 |
Parameters
get_ev_to_ebit accepts the following parameters:
- show_daily (bool, optional): Whether to show daily data. Defaults to False.
- diluted (bool, optional): Whether to use diluted shares in the calculation. Defaults to True.
- rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
- growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
- lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
- standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
- trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.