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> I have no idea what you're talking about. Clearly. I said: - EBITDA is used for both comparison and YoY trends You replied: - YoY trends don't matter in is
by mbesto 5y ago
> I have no idea what you're talking about.
Clearly.
I said:
- EBITDA is used for both comparison and YoY trends
You replied:
- YoY trends don't matter in isolation
All of my clients (PEGs) used EBITDA both as a tool to normalize YoY trends and to do like for like comparisons of comparable assets. Ultimately this is to evaluate whether they want to make an investment or not.
Since you cared to provide some contradictory clarification to my comment, I can only assume you were disagreeing that EBITDA can only be used for comparative measures, which is 100% not true as per practice. Hence my example was that in theory you could make an investment decision in isolation (as naive as that might be).
- ericmay 5y agoI think the person in the OP edited their post. They no longer mention YoY changes which is what the comment I replied to was asking about and I responded to. All I was saying is that you have to have context and something to compare the YoY to and you can't simply look at a YoY growth rate. It's literally meaningless to do so without comparables. It's like saying the velocity of something is 50, ok who cares unless you can tell me how it relates to some other thing. If a company grows 100% YoY I don't care without information relating it to other investment options. 100% could very well be really bad unless I know what is normal, below average, above average, etc. So idk what's really going on here anymore. I think something has become confused that's causing this conversation to go in useless circles.