Vasudeva Reddy

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Operating earnings are very similar to earnings before interest and taxes or EBIT. Many times, the numbers will be identical. But operating earnings differ from EBIT because the operating earnings figure is worked out from the top of the income statement down, and EBIT is worked out from the bottom up. Calculating operating earnings from the top down standardizes the metric, making a comparison across companies, industries, and sectors possible.
The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market
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