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  "notes": "Includes a specific table demonstrating how to normalize depreciation for comparability.",
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      "text": "Most useful where comparables' depreciation policies are similar",
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      "text": "EBIT is a better measure of 'free' (post-maintenance capital spending) cash flow than EBITDA, and is more comparable where capital intensities differ.",
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      "text": "EBIT is a post-goodwill figure. However, we believe that goodwill amortisation is not an economic charge and should properly be added back to operating profit.",
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      "text": "Note: We have not adjusted net profit for the 'additional' tax that theoretically would be paid as a result of lower depreciation expense. First, depreciation for tax purposes is typically calculated separately from book depreciation. Second, tax is a real expense that cannot be affected by analytical adjustments.",
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      "text": "Definition: Core EV/core earnings before goodwill amortisation (but after amortisation of other intangibles), associates, interest and taxes. It is stated pre reported exceptional or extraordinary items.",
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      "text": "Formula: EV/EBIT = (ROIC - g) / (ROIC * (WACC - g)) * (1 - T)",
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      "text": "Source: UBS Warburg",
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