Fundamental Analysis

Fundamental Analysis for Traders

The use of the fundamental analysis approach in trading has long been an object of argument between its followers and those who question the method’s effectiveness in determining a stock’s intrinsic value. Rather than taking sides in this argument, we’ll instead focus on how a trader can benefit from fundamental analysis. We’ll discuss the strengths […]

Fundamental Analysis

EBIT/EV Multiple

What Is the EBIT/EV Multiple? The EBIT/EV multiple, shorthand for earnings before interest and taxes (EBIT) divided by enterprise value (EV), is a financial ratio used to measure a company’s "earnings yield." The concept of the EBIT/EV multiple as a proxy for earnings yield and value was introduced by Joel Greenblatt, a noteworthy value investor […]