I think youve misunderstood an important aspect of my point. Im not using EBIT / EV as a way of determining an "intrinsic value" for the company. Its just an indication of what return you're getting for the money youve invested. FCF / EV is potentially a better measure but EBIT / EV is a reasonable enough proxy.
So why is ROE the best measure of the distributable return of a company?
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