Thursday, February 10, 2011


Vice Chancellor Jack Jacob of Delaware shows MGB how to find DCF:
[The expert witness] determined the ratio of MVIC to other financial measures such as EBIT, EBITD, DFNI,  DFCF, Interest Income and TBVIC...
--Le Beau  v. M.G. Bancorporation, Inc., 1998 WL 44993 (1998).


1 comment:

Ken Houghton said...

The scary thing is that I recognized all of those except for Market Value of Invested Capital immediately--and I wouldn't pretend to be an Expert Witness, since EBIT, EBITD, and EBITDA are all nonsensical fictions that make centaurs, hippogriffs, and other legendary elements of fantasy seem quotidian.

(Working definition of EBITDA: what the company would be worth if we hadn't run it into the ground with our skilled management.)