04-29-2017, 03:33 PM
Hi Everybody,
I know that the most common ratio that investors use is the Price/Earnings TTM, Forward P/E, and 5 year P/E range. But I have heard that it is better to use the Enterprise Value (sum of company's market cap + its debt and preferred stock minus cash and cash equivalents) / Earnings before Interest, taxes, depreciation and amortization. I have been able to find the 10 year EV/EBITA ratio on Gurufocus but don't know how reliable the website is. I am able to do my screening through Finviz and my fundamental analysis through Morningstar Premium through my library but I don't think they have much in regards to EV/EBITA or EV/Revenues. Let's look at a couple of stocks below:
Let's look at Minnesota Mineral and Mining (MMM) for example:
The TTM P/E is 23.68, Forward P/E 20.1 and 5 year range of 13.62-23.71.
The EV/EBITA is 15.12, and 10 year range is 5.7 to 15.5.
It looks like either way you look at it for MMM, it is near the high end of its range for P/E and EV/EBITA.
However, if you look at Unilever (UL) the P/E looks high but the EV/EBITA looks near its low during last 10 years.
The TTM P/E is 25.56, Forward P/E 19.9, and 5 year range of 15.64 to 25.64
The EV/EBITA is 8.1, and 10 year range of 5.6 to 17.2
Anyone know any good sites or use Gurufocus at all? Thanks
I know that the most common ratio that investors use is the Price/Earnings TTM, Forward P/E, and 5 year P/E range. But I have heard that it is better to use the Enterprise Value (sum of company's market cap + its debt and preferred stock minus cash and cash equivalents) / Earnings before Interest, taxes, depreciation and amortization. I have been able to find the 10 year EV/EBITA ratio on Gurufocus but don't know how reliable the website is. I am able to do my screening through Finviz and my fundamental analysis through Morningstar Premium through my library but I don't think they have much in regards to EV/EBITA or EV/Revenues. Let's look at a couple of stocks below:
Let's look at Minnesota Mineral and Mining (MMM) for example:
The TTM P/E is 23.68, Forward P/E 20.1 and 5 year range of 13.62-23.71.
The EV/EBITA is 15.12, and 10 year range is 5.7 to 15.5.
It looks like either way you look at it for MMM, it is near the high end of its range for P/E and EV/EBITA.
However, if you look at Unilever (UL) the P/E looks high but the EV/EBITA looks near its low during last 10 years.
The TTM P/E is 25.56, Forward P/E 19.9, and 5 year range of 15.64 to 25.64
The EV/EBITA is 8.1, and 10 year range of 5.6 to 17.2
Anyone know any good sites or use Gurufocus at all? Thanks