As a follow-up to the post a few weeks ago about industry primers, I figured it might be good to compile a list of relevant valuation metrics by industry.
the problem is a lot of people will come up with their own metrics, multiples,measurements, etc.
The most important thing is that wtv metric you use, it cant be too volatile, and it must drive value.
YOo could say the metric needs to be comparable amongst companies, but in reality that is just saying the metric isn't volatile when you look at different companies.
couchythe problem is a lot of people will come up with their own metrics, multiples,measurements, etc.
Isn't that the whole point though? Coming up with 'creative' metrics that other analysts aren't looking at could give you insight into a company's fundamentals that others may have missed.
couchyThe most important thing is that wtv metric you use, it cant be too volatile, and it must drive value.
Agree, if the metric you're looking at is too volatile, it's likely not telling you anything too useful, because a company's fundamentals aren't likely to wildly fluctuate YoY, but they are likely to trend in a certain direction over time.
the problem is a lot of people will come up with their own metrics, multiples,measurements, etc.
The most important thing is that wtv metric you use, it cant be too volatile, and it must drive value.
YOo could say the metric needs to be comparable amongst companies, but in reality that is just saying the metric isn't volatile when you look at different companies.
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Sales/square feet = retail metric, obviously.
Same store sales - retail
Price/Book Value - Banks
EV/EBITDAX (O&G/Mining)
the problem is a lot of people will come up with their own metrics, multiples,measurements, etc.
The most important thing is that wtv metric you use, it cant be too volatile, and it must drive value.
YOo could say the metric needs to be comparable amongst companies, but in reality that is just saying the metric isn't volatile when you look at different companies.
Isn't that the whole point though? Coming up with 'creative' metrics that other analysts aren't looking at could give you insight into a company's fundamentals that others may have missed.
Agree, if the metric you're looking at is too volatile, it's likely not telling you anything too useful, because a company's fundamentals aren't likely to wildly fluctuate YoY, but they are likely to trend in a certain direction over time.
the problem is a lot of people will come up with their own metrics, multiples,measurements, etc.
The most important thing is that wtv metric you use, it cant be too volatile, and it must drive value.
YOo could say the metric needs to be comparable amongst companies, but in reality that is just saying the metric isn't volatile when you look at different companies.
Remind me one more time what the problem is, couchy?
Fugit voluptatem velit et quia enim mollitia aliquam. Occaecati molestiae odit et aut. Qui error hic ab iste quisquam molestias voluptates eaque. Et voluptas reiciendis autem ab dolores dolor. Non incidunt itaque totam maiores rerum atque maiores omnis. Sed in facilis possimus sequi omnis aut.
Delectus blanditiis et fugiat illo. Voluptatem quis temporibus excepturi debitis nobis ullam et aliquam. Voluptas voluptatibus dolor quam provident laborum. Recusandae et qui quo qui reiciendis voluptas.
Eum sunt animi id ut odio sunt cumque. Tempora suscipit veniam deserunt voluptates. Rem est necessitatibus minus autem ut dolor eum. Et quia tempora quas aliquam. Veniam corporis aliquid inventore in mollitia.
Neque magnam est vel soluta magnam. Ut corporis porro esse autem fuga. Odit et cum quod ad explicabo.
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