Re:Allbirds S-1 IPO
by addicted on Tuesday August 31, 2021 @01:33PM
(#28370990)
EBITDA is a good measure of the upper bound of the earning potential of the current business.
And you're also right in that it's useful for comparing with similar companies. It's greatest value is in the variety of ratios that it slots into.
If 2 similar companies have very different EBITDA/Revenue ratios, e.g., that would indicate that the company with the lower EBITDA/rev ratio is probably less efficiently run.
And you're also right in that it's useful for comparing with similar companies. It's greatest value is in the variety of ratios that it slots into.
If 2 similar companies have very different EBITDA/Revenue ratios, e.g., that would indicate that the company with the lower EBITDA/rev ratio is probably less efficiently run.