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EBIT: Earnings Before Interest & Taxes.

EBITD: Earnings Before Interest, Taxes, Depreciation & Amortisation.

EBITDAP: Earnings Before Interest, Taxes, Depreciation, Amortisation & Pensions.

EBITDAR: Earnings Before Interest, Taxes, Depreciation, Amortisation & Rent.

Enterprise Value: a measure of a company’s value, EV is calculated as market capitalisation plus debt, minority interest and preferred shares, minus total cash and cash equivalents. It is the theoretical takeover price of a company which may not actually be changing hands. It takes account of issues such as the amount of a company’s debt which a new owner would have to settle. It is an important indicator of value acquired but of limited use as a component in thin cap agreements, since valuations have to be renewed regularly.

Equity Capital: the value of a company, composed of shareholders’ interests and reserves, after deducting all liabilities. For financial transfer pricing purposes equity means shareholders’ funds, adjusted for any entries of doubtful or ephemeral value.

EURIBOR: Interbank lending rate for banks in the Euro zone, used as a benchmark for fixing loan rates within that area. Equivalent to LIBOR (see entry below) and managed by the European Banking Federation.

Eurobond: International company bond issued by a company in a market other than its domestic market, in the form of loans, debentures or convertible debentures in a currency other than that of the issuer’s home country. This is the general market usage and differs from the definition at ITA07/S987. See also Quoted Eurobond.