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Ep 42. Using Comparables to Value Companies

Focused Compounding

00:00

The Importance of Gross Profit in Business

For the newsletter, we used EV to sales, EV to gross profit, EV to e-b-de-e-da. That's not a common one, is it? Can you explain why you use that? I think it matters to inquire in some cases. What we all care about eventually is the free cash flow that you as the owner could keep. And that compared to like enterprise value,. basically is what we care about, right?

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