Multiples are a key part of fundamental analysis and security valuation. However, while the use of multiples can make fundamental analysis easier, they can be easily manipulated. Most the time this manipulation isn’t on purpose. The mere fact that analysts try and reflect such a huge volume of financial data in just one figure such as the P/E multiple or EV/EBITDA ratio is bound to lead to data discrepancies. The Buffett Series – Buffett on Book Value Marty Whitman – Value Investors Should Focus On Fundamental Finance, Here’s Why The topic of misleading multiples is something UBS’s fundamental equity analysts…
How To Improve Your Investing Process With Clean Multiples
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk