In recent weeks, we’ve shown how investors who use traditional valuation metrics like price-to-book and price-to-earnings are led to buy low-quality, overvalued stocks. These aren’t the only problematic metrics though. EBITDA, and its more troublesome derivative, adjusted EBITDA, can be even more damaging to an investor’s search for quality stocks.Not a Member Yet? You need a Gold Membership or higher to view the content on this page.
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