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Tag: ev/ebit

The “Real” P/E Ratio of Starbucks

It is always my joy to be writing to you in my blog as I hope to share more knowledge and provide clarity in your investing journey. Previously, I wrote about Starbucks and how its turnaround plans would play out similar to McDonald’s. The title is “Is Starbucks Your Cup of Money?” While I use…
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How to Value Stocks? – P/E or EV/EBIT?

What is P/E or EV/EBIT? Value investing is one of the ways to compound your wealth. Starting out as an investor, the common valuation metric I use is price-to-earnings-ratio (PER). This is a very simple approach of taking the “share price divided by the earnings per share”. It can be calculated using “market capitalization divided…
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