Formulas and Ratios for D366 OA with 100% accurate solutions + rationales 2026

EBIT (earnings before interest and taxes)

EBIT = Revenue - Operating Expenses

EBITDA (earnings before interest, tax, depreciation and amortization)

EBITDA = EBIT + Depreciation + Amortization

EV (enterprise value)

EV = MC + TD - C&CE

MC (market capitalization)

MC = MPPS x NOSO

EBIT / EV

EBIT / EV = EBIT / EV

EPS Ratio (earnings per share)

EPS = (NI - DOPS) / AOS

PE Ratio (price to earnings)

PE = MPPS / EPS

PEG Ratio (price to earnings to growth)

PEG = PE / Annual EPS Growth Rate

HCI Ratio (higher capital intensity)

HCI = ATA / Revenue

CE Ratio (capital employed)

CE = TA - CL

ROCE (return on capital employed)

ROCE = (EBIT / CE) x 100

ROA (return on assets)

ROA = NI / TA

ROE (return on equity)

ROE = NI / SE

PVA (present value adjustment)

PVA = Actual - Previously Assumed

DA (Discounted Adjustment)

DA = PVA x PV Factor

VE Ratio (value earnings)

VE = EV / Earnings x 100

Earnings

Earnings = NI

Trailing PE Ratio

Trailing PE = Current Share Price / Historical EPS

Forward PE Ratio

Forward PE = Current Share Price / Predicted Future EPS

EVA (economic value added)

EVA = NOPAT - (WACC x TIC)

NOPAT (net operating profit after taxes)

NOPAT = Operating Income x (1 - Tax Rate)

WACC (weighted average cost of capital)

WACC = (Cost of Equity x Equity / TIC) + (Cost of Debt x Debt / TIC)

TIC (total invested capital)

TIC = TA - Non-Interest Bearing CL

MV (market value)

MV = Current MPPS x NOSO

CV (continuing value)

CV = FCF at Given Year x (1 + g) / WACC - g

PV of CV (present value of continuing value)

PV of CV = CV at Given Year x Discount Factor

PS Ratio (price to sales)

PS = MC / Revenue

AC (accrual component)

AC = (NI - NCFOA) / ATA

FCF (free cash flows)

FCF = OCF - CapEx

PV FCF Equity (present value of future cash flows for equity)

PV FCF Equity = FCF / (1 + r) ^ n

PV FCF Debt (present value of future cash flows for debt)

PV FCF Debt = FCF / (1 + r) ^ n

PV (DDM) (present value of discounted dividend model)

PV (DDM) = D / (1 + r) ^ n

TV (DDM) (terminal value of discounted dividends)

TV (DDM) = Dn + 1 / r - g

PV TV (present value of terminal value)

PV TV = TV / (1 + r) ^ n

Total PV (total present value)

Total PV = Sum of all PVs + PV TV