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Tag Archive: Discounted cash flow


Good Bad & Ugly about EBITDA

EBITDA is one of those terms that has received increased usage but usually for the wrong reason. This article will define it blogand discuss how it can be useful but also misleading. EBITDA is fancy tax lingo for earnings before interest, taxes, depreciation, and amortization. It is calculated by taking operating income and adding back to it interest, depreciation and amortization expenses. EBITDA is used to analyze a company’s operating profitability before non-operating expenses (such as interest and “other” non-core expenses) and non-cash charges (depreciation and amortization).

The Good EBITDA can be used to analyze the profitability between companies and industries.Because it eliminates the effects of financing and accounting decisions, EBITDA can provide a relatively good “apples-to-apples” comparison. For example, EBITDA as a percent of sales (the higher the ratio, the higher the profitability) can be used to find companies that are the most efficient operators in an industry. The ratio can also be used to evaluate different industry trends over time. Because it removes the impact of financing large capital investments and depreciation from the analysis, Continue reading

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Beating market all the times is an impossible task, although many people beat the market on daily basis but the same Alternative-Investments-Collage1person can’t beat the market at all times. Even the czars like Benjamin Graham and Warren Buffet did not able to do so.  Looking at today’s scenario the Indian Sensex might be  breaching  20,000 level and may go on to breach 30,000 level as well …

There are number of companies whose valuations are way below there issue price, this type of condition Continue reading

Valuations and Mr. Market

Beating market all the times is an impossible task, although many people beat the market on daily basis but the same

person can’t beat the market at all times. Even the czars like Benjamin Graham and Warren Buffet did not able to do so.  Looking at today’s scenario the Indian Sensex has already breached the levels and came back and sustaining for 17000-18000 despite the economy doing not great.

There is number of companies whose valuations are way below Continue reading

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