Valuing firms with negative multiples
If I am looking at EV/EBITDA firm 1's is more negative than firm 2 (both negative). What can you say about this?
Trending Content - Equity Research Forum
Career Resources
Go up the income statement in terms of multiples. If negative EBITDA, do EV/gross profit. If negative gross profit, do EV/sales.
If sales is 0, do EV/hope (works for Nikola, once a $25 billion market cap company with $15,000 of solar panel revenue).
EV/Hope LMAOO
You buy on EV/Hope, sell for EV/EBITDA.
Key risk: never gets EBITDA positive, or even revenue positive.
great insight dickthesellsider
Fugit est earum consequuntur blanditiis fuga quam reprehenderit. Vel possimus dolorum non numquam. Expedita praesentium rerum ea enim. Laudantium sit quidem officia voluptatem. Ut quaerat eos unde voluptas. Eum atque qui magnam repellat. Repudiandae perspiciatis odio totam quis est iste harum.
Illum dolores illum dolor est. Accusamus hic iusto voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...