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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: valueminded who wrote (11943)	1/23/2001 10:54:19 AM
From: TimbaBear	Read Replies (1) \| Respond to of 78644

Chris Thank you for clarifying the context of EVR usage. So, a company which shows high EBITDA is more likely to have a lower EVR. I understand that the Enterprise Value number was just sitting there waiting to be used, because it had been derived to arrive at a company's sale price. But as an investor in a value situation, as a tool for evaluation, I still don't have any comfort with it. But then I've got screwy ideas anyway! I mean, to me, EBITDA is not that important of a number either. I would much rather use CFO(Cash from Operations). Since I never buy whole companies, just little pieces of them, I don't have to tie myself to the same techniques as those who do. I would much rather buy a company selling near it's NetNet valuation levels than one based on an EVR ratio. Have you considered using CFO instead of EBITDA in this ratio? Any thoughts on it? Timba