i think the point that some are trying to put forward is that a company may be generating significant income but using this to pay down debt. a p/e in these circumstances wouldn't work initially.
eg. mc 200mil debt 200mil free cash 70mil.
60mil to pay debt leaving 10mil for expenses leaving them with 0 profit. p/e ?
once debt is paid then 60mil profit p/e 3-4
i think the point that some are trying to put forward is that a...
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