Q: Hello Peter & Co,
There are obviously a variety of metrics to measure the valuation of the stock. I usually look at the ratio ROE/forward PE which should be above 1; you mention in your report on BIN that, due to its capital structure, EV/Sales and EV/EBITDA are better metrics. Could you please explain? How does the average retail investor parse the various ways of measuring valuations?
Thanks,
Antoine
There are obviously a variety of metrics to measure the valuation of the stock. I usually look at the ratio ROE/forward PE which should be above 1; you mention in your report on BIN that, due to its capital structure, EV/Sales and EV/EBITDA are better metrics. Could you please explain? How does the average retail investor parse the various ways of measuring valuations?
Thanks,
Antoine