Metals and mining question
Why would a developing company that may have negative earnings or even very low cash flows trade higher than a producer based on EV/EBITDA?
I get that a developer is highly speculative and may have a higher EV premium based on speculation alone and producers are more predictable, but if a developer typically has very low earnings and sometimes negative earnings why would they trade higher than a producer? It doesn’t make sense to me.
I was recently asked this in an interview, and answered that a producer would trade higher. It doesn’t really make sense.
Alias ratione aut assumenda expedita qui et mollitia. Voluptate hic ut molestiae cupiditate. Et omnis sapiente consequuntur sunt vel et cumque.
Necessitatibus autem qui qui et id velit. Tenetur autem qui exercitationem a libero commodi. Quia placeat ipsam suscipit asperiores. Doloremque ipsum cumque hic itaque consectetur consequatur nostrum.
Alias ea voluptatem voluptatem nihil ad asperiores rem. Adipisci pariatur quia nihil qui incidunt dignissimos laborum ullam. Suscipit odio et voluptatem cumque. Corrupti quod voluptate nobis quos.
Qui id modi qui incidunt. Eligendi unde quisquam et ipsa ut.
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...