EBITDA = Executive Bullshit Intended To Distract Attention

by a searcher

2 years ago

Ebitda is a proxy to cash flow, a lot of people think EBITDA is valuing a business. No; valuing a business comes after than EBITDA.

Another metric paired with EBITDA is Multiples, which does not account for cash flow thus leading to overvaluations.

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33 comments

intermediary

So what do you propose?

1 year ago | like reply | 0 likes

searcher from Babson College - F.W. Olin Graduate School

so then shouldn't the real metric be FCF? I'm sure there's ways you can play with that number too though

1 year ago | like reply | 0 likes

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