Investment Guides 

Cash is king

Another process I undertake in my financial analysis is to calculate the cash profits of a company, which in City speak is known as earnings before interest, taxation, depreciation and amortisation (Ebitda). I then work out the company's enterprise value (EV), which is the sum of its market value and net debt or market value less net cash, and then work out the ratio of EV to Ebitda.

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