Rare Element Resources EV/EBIT

What is the EV/EBIT of Rare Element Resources?

The EV/EBIT of Rare Element Resources Ltd. is N/A

What is the definition of EV/EBIT?



Enterprise value to earnings before interest and taxes (EV/EBIT) is a financial ratio used to measure if a stock is priced appropriately to similar stocks and the market. It is similar to the P/E ratio.

ttm (trailing twelve months)

The EV/EBIT ratio addresses some of the shortcomings of the P/E ratio. Instead of taking market capitalization, the ratio uses enterprise value, as it takes into account the true value of the company. Enterprise value includes both equity and debt. It is calculated as:

Enterprise value = market cap + total debt – cash and cash equivalents

The EV/EBIT ratio is useful in comparing peers within the wider market. A high EV/EBIT ratio indicates that a company’s stock is overvalued. On the opposite, a low EV/EBIT ratio indicates that a company’s stock is undervalued. The lower the ratio, the more financially stable a company should be. However, investors and analyst should use other ratios and information to get a full picture of a company’s financial state and actual value.

EV/EBIT of companies in the Materials sector on OTC compared to Rare Element Resources

What does Rare Element Resources do?

Rare Element Resources Ltd. explores for mineral properties in the United States. It holds a 100% interest in the Bear Lodge property that comprises the Bear Lodge REE project and the Sundance Gold project located in central Crook County, northeast Wyoming. The company is headquartered in Littleton, Colorado.

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