Actually plough, just looking through the posts - you are on the money.
PE stands for Price Earnings ratio.
EBITDA is a different metric and is normally compared to EV (Enterprise Value = Mkt Cap + net Debt). An EV/EBITDA ratio gives you a figure that normalises cashflow for different levels of debt between companies.
Mixing P with EBITDA gives you a PEBITDA ratio which isn't that useful (unless you use the PEBITDA ratio all the time - I am not sure how many people do).
Ratios aside, do you happen to know how much of a competitive advantage the Swick drills have? (smaller footprint, more productive etc?)
SWK Price at posting:
39.5¢ Sentiment: Hold Disclosure: Held
