But presuming software is the ultimate driver of the business, EBITDA will become increasingly relevant: A decent compromise for now is to use an adjusted margin, averaging the latest 19.9 % EBITDA margin & Op FCF margin of 7.2 % (noting a prior year margin of just 2.6 %)-- a 13.6 % adjusted margin deserves a 1.33 Price / Sales ratio. (wexboy.wordpress.com)
As above, let's add back two thirds of all this investment — to arrive at an adjusted Op FCF of 3.5 M, or 21.8 % of sales. (wexboy.wordpress.com)
You also find that it outperforms other key ratios as FCF yield, Gross Profit yield and Book to Market. (theinvestorspodcast.com)