I've been seeing some investors look at the metric "ex-cash P/E" when evaluating tech companies. From my understanding, it seems like ex-cash P/E is essentially equal to EV/earnings since the numerator is equity value minus net cash. If that's the case, doesn't that mean ex-cash P/E is a fundamentally incorrect multiple given that the numerator and denominator of EV/earnings isn't apples to apples (as all the IB guides tell us)?
| +237 | UBS Healthcare | 49 | 1d |
| +71 | UBS MDs Treat Employees like Dogshit, Data to Prove it | 12 | 14h |
| +60 | Shana tova - happy new year | 12 | 21h |
| +58 | More diversity needed in the industry | 11 | 3d |
| +48 | NYC Wall Street Run Club | 13 | 3d |
| +40 | Lost all ambition / don’t care at all anymore | 14 | 16h |
| +24 | What is the role of an analyst at your firm? | 3 | 20h |
| +22 | Feeling a bad pattern forming. I need some help | 3 | 4d |
| +19 | Reaching out to interviewer who rejected me | 2 | 4d |
| +19 | "Don't include firm in Cover Letter's file name" | 9 | 16h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
What about Private/Equity?
Cum dolores dolor et rerum accusamus amet quia. Impedit ex libero odit ut. Rerum sint rerum corporis nam nemo. Dolores vero at optio suscipit ad. Nemo aut velit sit est.
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...