§ 01
AAPL — P/E, EV/EBITDA, P/B. Open AAPL on the Ledge to see current values.
§ 02
| Metric | Best For | Weakness |
|---|---|---|
| P/E | Quick comparison, profitable companies | Ignores debt, manipulable via accounting |
| EV/EBITDA | Comparing across debt levels, M&A | Ignores CapEx differences |
| P/B | Banks, REITs, asset-heavy industries | Useless for asset-light tech |
| DCF | Intrinsic value from fundamentals | Highly sensitive to assumptions |
§ 03
If most metrics say cheap but one says expensive, dig deeper. There might be a good reason. Maybe earnings are about to drop, or assets are overvalued on the books.
§ 04
Pick any stock. Check P/E, EV/EBITDA, and P/B all at once in the **Key Metrics** section. Do they tell a consistent story?
§ 05
§ 06
Stock X: P/E 25x, EV/EBITDA 15x, P/B 4x. Your DCF suggests 20% downside from current price. Peer group average: P/E 15x, EV/EBITDA 10x, P/B 2x. What's your conclusion?
Five questions · AI feedback
Sit with the ideas.
A stock has P/E of 12x (below sector median of 18x), EV/EBITDA of 7x (sector: 11x), and P/B of 0.9x. The DCF shows 40% upside. But the company has declining revenue for 3 consecutive years. What should you do?
Why: