I was wondering when you were going to point this out.
I think we had an argument on another thread re EBITDA being a good measure for valuations / cashflow.
So I will concede I was [somewhat] wrong.
Not long ago I had a call with Credit Suisse on this very issue. Even though EBITDA is a traditional metric, the main reason EBITDA is a poor here is, as you have pointed out, ORG, AGL etc are very capital intensive, so excluding Depreciation, or at the very least Capex is missing a huge chunk of the drivers of cashflow and thus valuation.
Its very poor for Cashflow, as it omits capex, working capital (which can also be huge for retail and capital intensive industries), SI and tax
As you have eluded
AGL Future Earnings, page-311
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Last
$10.34 |
Change
-0.040(0.39%) |
Mkt cap ! $6.956B | |||
| Open | High | Low | Value | Volume |
| $10.30 | $10.34 | $10.24 | $41.89M | 4.026M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 1900 | $10.31 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $10.34 | 24722 | 6 |
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| Last trade - 16.10pm 19/07/2024 (20 minute delay) ? |
| AGL (ASX) Chart |