Well, look around — every single day, you'll see the same absurd situation: Investors (& the financial media) constantly apply drastically different valuations to companies / stocks which share essentially the same
underlying financial metrics.
I think we should take the Warren Buffet approach at looking at
the underlying financial metrics and not trying to meet the stock markets expectations.
Not exact matches
Management uses certain of these non-GAAP measures, including Adjusted EBITDA and segment Adjusted EBITDA, as key
metrics in the evaluation of
underlying Company and segment performance, in making
financial, operating and planning decisions and, in part, in the determination of cash bonuses for its executive officers and employees.
Zuora is the only solution that uniquely combines your
financial, demographic and behavioral data to not only give you the KPI's you need right out of the box but also allow you to drill into the
underlying customer behaviors driving those
metrics.
Thus, traders and investors using aggregate
financial accounting numbers to derive superficial
financial ratios (e.g. profit margin, return - on - equity) and valuation
metrics (e.g. low price - to - earnings, low price - to - book) without understanding the
underlying business model, the related - party transactions artificially inflating the aggregate
financial numbers and the data generation process in the
financial footnotes can be misled.
As a result, it was probably very difficult for you to understand when to buy and sell or even value based on
underlying operations rather than superficial
financial metrics.