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Bell Curve
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EBITDA Minus Stock Based Compensation Is the New Net Profit
Brad Gersner for ultimate or capital was the one that really kind of coined it, but he said, EBITDA minus stock based compensation is the new net profitability. Right. So basically what you're saying is whatever the actual cash that the company is generating and then how much stock-based compensation they are creating every year to do so. I mean, it is technically part of the calculation for profitability, but like investors, when they're looking at things, try to reduce things down. And this just basic equation, I think is a good way of thinking about what's like the real profitability for these businesses or their profit that actually matters.
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