I take a lot of notice of EBITDA for the following reasons:
The I is for interest and reflects the company's debt, not whether the underlying business is profitable.
T is for tax and can reflect on various things like depreciation, adjustments for prior years, capital losses / gains and so on rather than the underlying profit for the year.
D and A, depreciation and amortisation reflects the historical costs of assets written off for the year, and would likely to be different for the buyer of a business who may want assets scrapped etc..
The buyer of a business would certainly do an EBITDA to discover the real business value.
Operating Cash Flow (OCF) is also a favourite. I add back tax paid to the statement figure and deduct the amount of maintenance capex to get the figure I want. I then get the percentage of OCR to revenue, market cap and accounts payable. These are for comparison purposes, and have saved me more than once from investing in duds.
Of course none of that applies to FLC at this stage, we just expect it will in 2021.
I take a lot of notice of EBITDA for the following reasons:The I...
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Last
12.0¢ |
Change
-0.015(11.1%) |
Mkt cap ! $129.1M | |||
| Open | High | Low | Value | Volume |
| 13.5¢ | 13.8¢ | 11.5¢ | $86.73K | 686.8K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 249999 | 12.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 13.0¢ | 17781 | 1 |
View Market Depth
| Last trade - 16.10pm 17/05/2024 (20 minute delay) ? |
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Last
12.5¢ |
Change
-0.015 ( 10.7 %) |
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| Open | High | Low | Volume | ||
| 13.0¢ | 13.0¢ | 12.0¢ | 230483 | ||
| Last updated 15.01pm 17/05/2024 ? | |||||
| FLC (ASX) Chart |