Ev/ebitda and P/E contradicting
What if the EV/Ebitda of a company against industry average shows its overvalued but P/E against industry shows company is undervalued? Can covid be used to explain the fluctuations in P/E?
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Assuming you mean over or undervalued compared to comps, first step would be to make sure those are good comps. Not sure what you mean by "industry" but comparing multiples to an entire industry is a pointless exercise most of the time
There could be a lot of add-backs to the calculation of EBITDA, and even more add-backs/deductions for net income. Make sure you are using a normalized EBITDA or net income when calculating multiples.
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