Stocks with this metric have quadrupled the returns of the S&P 500
Welcome back you guys! In this video, I am going to share with you a metric that I always look for in any stock I am analyzing. It is called the Enterprise Value to EBITDA Ratio, or EV/EBITDA for short.
Stocks that have a Ratio below 10 have absolutely CRUSHED the returns of the S&P 500...and not just over a short time frame. Over a 20 YEAR time period. That is huge because this is definitely not some trading fad that is hot one year and goes away once everyone jumps on the bandwagon. This is a powerful valuation metric that has been around a very long time...and will always be a valuable metric.
In this video I will explain what Enterprise Value is, what EBITDA is, how this is different from the PE ratio, as well as where to find this info and how to search for stocks using the free screener on Yahoo Finance.
I hope you like this video and I really hope this helps you improve your investing results. If you have any question about this video, please leave a comment below.
Also, if you guys want to learn more about Value Investing as well as Options Trading using a Value Investing approach, please book a call with me at this link below:
https://www.wallstreetvalue.com/apply