The most
common valuation metric used for stocks is the P / E or price - to - earnings ratio.
Since one
common valuation metric is EV / EBITDA, a higher numerator will make the stock seem more expensive - that is the EV / EBITDA ratio will seem higher when using excess cash as opposed to cash.
Because of this, the most
common valuation metric that investors use — the price - to - earnings ratio — is not the best metric to assess Exxon's valuation.
Not exact matches
Many people worry that Facebook's estimated $ 100 billion
valuation is simply too high when compared to
common financial
metrics like its revenue growth and other companies.
One of the most commonly utilized
valuation metrics on
common stocks is the P / E ratio.