hard20 pts · first answer countscomparablesvaluation

Choosing EV/EBITDA over P/E

You are comparing two cement companies. One has no debt and the other is highly leveraged. Why is EV/EBITDA often better than P/E here?

A.EV/EBITDA is always lower than P/EB.P/E cannot be calculated for leveraged companiesC.EV/EBITDA is capital-structure neutral because it compares total firm value with profit before interestD.EV/EBITDA includes dividends paid

Discussion 0

Join free to post in the discussion.

Choosing EV/EBITDA over P/E

Discussion 0

Related questions