EMAT - Financials

Key items

• Sales: company revenues
• Gross Profit = Sales - Cost of Goods Sold
• EBITDA: Earnings Before Interest, Taxes, Depreciation & Amortization
• EBIT: Earnings Before Interest & Taxes
• PBT: Profit Before Tax
• PAT: Profit After Tax

NB:

• EBIT, PBT and PAT are given before Amortization of Goodwill (when the information is available)
• EBITDA, EBIT, PBT and PAT items are given before exceptionals

Epsilon Growth Indicator (EGI)

• Estimated expected sales growth rate
• Standard expected growth range : +/- [~0%], [2-5%], [5-10%], [10-20%], [20-50%] [>50%]
• If we have no data on expected / target sales, the EGI is based on past sales growth (CAGR), supposed representative of future growth

NB:

• When exported on excel, the EGI is given by a number from 1 to 11 that reprents the expected growth range, from [<-50%] to [>50%] - For ex. 6 = [~0%]
• This format (number rather than range) enables correlation work of multiples with growth

Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Gross profit = sales - cost of goods sold (COGS)

> See def. on Investopedia: www.investopedia.com/terms/g/grossprofit.asp

Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. It includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses, such as distribution costs and sales force costs.

See def. on Investopedia: www.investopedia.com/terms/c/cogs.asp

• Net Assets are given at fair value when the information is disclosed (IFRS)
• Financial debt: all interest-bearing debt (short & long term) + pensions liabilities
• Cash: non operational cash (ie. that can be distributed); by default: cash amount in the company accounts
• Net Financial Debt = Financial Debt - Cash