Thanks for this.Agree with you about Wendys, but not NPAT. The...

Thanks for this.

Agree with you about Wendys, but not NPAT. The further down the P&L you go, the greater the risk of contamination by accounting policies such as depreciation, tax, and the treatment of abnormal items. This is why, professional managers typically use a normalized NPAT (underlying) when they do, but metrics based on EBITDA, EBIT, and FCF are often preferred in my experience.

It goes without saying of course, that this is an imperfect science at the best of times, and you should use whatever resonates with you...