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A Superior Valuation Metric: Enterprise Value (EV) To EBITDA

A Superior Valuation Metric: Enterprise Value (EV) To EBITDA | Wall Street Daily by Jun Hao, The Asia Report

I am a big fan on Tobias Carlisle’s book, Deep Value, and Quantitative Value which I highly recommend. I use EV/EBIDTA to be very useful on a basic level when screening, and when comparing different valuations between stocks.

Chanced across a article on the Wall Street Daily which really highlighted how powerful this metric is.

The benefits of using Enterprise Value are that they take into accounts the net cash or net debt of the company.

* I tend to get my books from Amazon.com, Inc. (NASDAQ:AMZN) these days are they tend to be significantly cheaper.

I recommend doing a bulk order for a couple of books you like as you get free shipping to Singapore over $125 with their FREE AmazonGlobal Saver Shipping.

I personally own and have read any books recommended on this site.

The price-to-earnings (P/E) ratio is perhaps the most popular valuation metric used by investors.

Pull up any finance website stock quote page, and you’ll find the P/E ratio neatly calculated for you.

The reason it’s so widely used is because it’s simple and intuitive.

You take the price of a stock and divide it by either trailing or forward (estimated) earnings per share (EPS). The...


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