- EV/EBITDA is a widely used metric these days, so every investor should understand what it is.
- We’ll discuss how EV/EBITDA is calculated and how you can manipulate it.
- There are some pros to using it, but also some cons.
When I was just starting with investing, I remember that the beta coefficient was popping up everywhere, next to almost every stock price or price to earnings ratio.
The beta coefficient has faded in the last two decades as it was clear that markets aren’t efficient and that there is no real usage of the metric. Now a new metric has emerged lately and is used by most analysts. More →