Four Decades Of Data Show EBITDA Is The Best Valuation Metric

Mirror, mirror on the wall, which is the best valuation metric of them all?

I think that, every time you saw the word EBITDA [earnings], you should substitute the word “bullshit” earnings. – Charlie Munger

Charlie Munger famously isn’t a fan of EBITDA earnings, but if a new research paper from Columbia Business School is to be believed, investors should not be so quick in disregarding this financial metric.


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