Would a credit investor be more concerned about P/E or EV/EBITDA?
As the title states. Would a credit investor be more concerned about P/E or EV/EBITDA? I think it would be EV/EBITDA, but am struggling to come up with a good "why" answer to that.
As the title states. Would a credit investor be more concerned about P/E or EV/EBITDA? I think it would be EV/EBITDA, but am struggling to come up with a good "why" answer to that.
+169 | How to stop feeling like shit for not making it in IB? | 63 | 5h | |
+123 | If Tik Tok is forced to sell, what banks do you think would be involved in the deal? | 59 | 12h | |
+85 | Updated LA Banking Scene (2024) | 61 | 8h | |
+40 | Ranking banks that went under | 24 | 8h | |
+39 | Burnt Out M&A ASO | 22 | 2h | |
+36 | Relevance of A-Levels for U.K. London recruiting | 25 | 6h | |
+33 | A strategy for SA applicants late to the game like myself | 17 | 4h | |
+30 | Intern Ettiquette | 5 | 3s | |
+27 | Series 79 Help / Tips to Pass The First Attempt | 11 | 3d | |
+23 | What are hours like at BBs in London? | 47 | 1d |
Career Resources
We care about EV / EBITDA - Capex.
EBITDA by itself does not fully account for the recurring cash needs of a business, so subtracting capex gives a better picture on valuation. A company could have great ebitda margins, but may have to spend a ton on capex, so not much free cash flow left over. That’s why better to compare multiples on an EBITDA less Capex basis.
Cash taxes are usually small or zero for distressed companies and assume working capital is zero.
Suscipit aliquid enim voluptate facere molestias eius nemo. Nisi ut iusto mollitia quidem earum. Debitis eos maxime impedit repellat.
Sit pariatur aliquam animi consequuntur sed eaque. Facilis aut voluptates temporibus impedit magni nam magnam. Temporibus officia laboriosam magnam aut. Quia eos quis possimus facilis omnis qui.
Magni non perferendis adipisci consequatur sed aut fugiat. Adipisci odio optio sit. Quae et culpa sint molestiae aut qui. Mollitia repudiandae quidem rem ipsam eligendi esse. Sit exercitationem tempora maxime velit architecto.
Quas impedit saepe rerum. Repudiandae enim sed in quam sit voluptatem corrupti qui.
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...