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

To: bruwin who wrote (61963)	5/11/2019 10:33:01 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78753

I don’t know your problem with this metric (EV/EBIT). It’s a valuation metric and like stock prices, it changes with a the value of the stock, similar to a PE ratio. There is not much math required. Tobias Carlisle claims it outperforms the market, as determined by backtesting in several stock markets in the world (US, UK, Australia and others). The stock picked by this metric looks cheapish by the very nature, but that is probably, because they are either unloved (for whatever reason). I have no deeper opinion on this other than I own stocks too that are cheap on this metric and I think it is superior to PE, because it takes debt and cash into account.