EV to EBIT

Enterprise value divided by operating profit. The same construction as the EBITDA multiple with depreciation left in.

The same company trades at 13.56 times EBIT against 9.72 times EBITDA.

Leaving depreciation in is a deliberate choice, and often the better one. Depreciation approximates the capital consumed in the year, so the EBIT version penalises the business that needs heavy replacement spending, which is exactly what an owner cares about.

Where depreciation policies differ sharply between two companies, the EBITDA version is more comparable and the EBIT version is more honest.

Compute both and look at the gap.