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Your investor client is seeking your advice on some of the market ratios she has come across: P/E, Price/Sales, EV/EBIDA, EV/EBIT. Which of her understanding
Your investor client is seeking your advice on some of the market ratios she has come across: P/E, Price/Sales, EV/EBIDA, EV/EBIT. Which of her understanding is correct:
a.
EV ratios can be more suitable than PE ratios
b.
These ratios have positive values as you get your share price by using them as multiples.
c.
PE is the most used ratio because it can be used among all firms with different leverage.
d.
You will get exactly the same stock price no matter which ratio you are using
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