Question
Crude oil companies often trade at low multiples of EV to EBITDA. Which of the following is the a potential explanation for this phenomenon? They
Crude oil companies often trade at low multiples of EV to EBITDA. Which of the following is the a potential explanation for this phenomenon?
| They pay little in taxes. | ||
| They have high earnings. | ||
| They have high expected growth. | ||
| They have high net capital expenditures (difference between capital expenditures and depreciaton) | ||
| They are typically undervalued by the market. |
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Short Term Financial Management
Authors: Terry S. Maness, John T. Zietlow
2nd Edition
0030315131, 978-0030315138
