*Official* MasterLeong Thread - Part 2

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lbs

lbs

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wahkao3 said:
Did you calculate those ratios by yourself or you grabbed it off some source? where is your data source for the ratios?
is the data source reliable?

i do not like Enterprise value/ebitda because it strips away the effects of depreciation. Depreciation is a very real business cost and should never be stripped out.
Click to expand...

depreciation usually not cash charge ma? :s11:
anyway also must look beyond ev/ebitda since u never know how long you have to hold these stocks... look for dividend payout sustainability and consistency of payout
 
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bobbytkc

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wahkao3 said:
Did you calculate those ratios by yourself or you grabbed it off some source? where is your data source for the ratios?
is the data source reliable?

i do not like Enterprise value/ebitda because it strips away the effects of depreciation. Depreciation is a very real business cost and should never be stripped out.
Click to expand...


Numbers are from WSJ financial reports, manual calculations. They are usually not too far from the value reported by WSJ. WSJ also provides the ratios themselves, but my numbers are calculated using the numbers provided the financial report.

In any case, this is just the result of a stock screen I performed. I am not saying that these are necessarily good companies to invest in, but they are some of the cheapest according to the metrics I have used, so they can be a starting point for investment ideas. If you don't like Enterprise value/ebitda that's fine, but those are the results of my screening.

As a note, I have started a thread where I will put my monthly stock screens .
 
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wahkao3

wahkao3

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lbs said:
depreciation usually not cash charge ma? :s11:
Click to expand...
not cash charge doesnt mean is not a business cost.
depreiation is a very real business cost and should be factored in.

why ppl come up with funny ratios like EV/EBITA to strip out information is because investment banks want to sell the companies and when using EV/EBITA, the ratios look so much nicer. The company looks so much cheaper.

very deceptive

lbs said:
anyway also must look beyond ev/ebitda since u never know how long you have to hold these stocks... look for dividend payout sustainability and consistency of payout
Click to expand...

true. agreeed
 
wahkao3

wahkao3

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bobbytkc said:
but my numbers are calculated using the numbers provided the financial report.
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rare to see hardworking ppl like u to actually pull numbers out from the financial report. most ppl are lazy. They just grabbed it off yahoo finance without knowing how they are calculated or whether they are updated.

i think you have a bright future :o
 
lbs

lbs

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wahkao3 said:
not cash charge doesnt mean is not a business cost.
depreiation is a very real business cost and should be factored in.

why ppl come up with funny ratios like EV/EBITA to strip out information is because investment banks want to sell the companies and when using EV/EBITA, the ratios look so much nicer. The company looks so much cheaper.

very deceptive



true. agreeed
Click to expand...
edit: -ops, just see that i wrote what i type in the post referenced.
 
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