Value Investing with Legends cover image

Jan Hummel - Deep Diligence at Paradigm Capital

Value Investing with Legends

NOTE

Importance of Analyzing Margins and Enterprise Value to EBIT-A Multiple

Analyzing margins like the gross margin helps to gauge a company's pricing power and cost advantages. Stability in gross margin is crucial. Examining the EBIT-A margin reveals economies of scale over time. Evaluating trends in EBIT and relating it to enterprise value is essential. Understanding the relationship between enterprise value and EBIT-A multiple determines where a company stands currently.

00:00
Transcript
Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner