Quotes About Valuation

Furthermore, we do not think so-called EBITDA (earnings before interest, taxes, depreciation and amortization) is a meaningful measure of performance. Managements that dismiss the importance of depreciation - and emphasize cash flow or EBITDA - are apt to make faulty decisions, and you should keep that in mind as you make your own investment decisions

If options aren't a form of compensation, what are they? If compensation isn't an expense, what is it? And, if expenses shouldn't go into the calculation of earnings, where in the world should they go?

you should imagine market quotations as coming from a remarkably accommodating fellow named Mr. Market who is your partner in a private business. Without fail, Mr. Market appears daily and names a price at which he will either buy your interest or sell you his... Mr. Market has another endearing characteristic: He doesn't mind being ignored. p 209

I think that, every time you see the word EBITDA, you should substitute the words "bullshit earnings.

It is not how long you work at some task that determines what you'll receive for it in exchange. It is the value someone else places upon the product or service that determines what it is worth in exchange. Your "costs" are not important to the other person. He only cares about the value of the product to himself. What he'll pay to get your service is based solely on the value he places upon the object

Gross profit margin demonstrates competitive advantage: it is the purest expression of customer valuation of a product, clearly implying the premium buyers assign to a seller for having fashioned raw materials into a finished item and branding it.

Valuation premiums of quality companies often reflect some degree of expected operational outperformance, but actual performance tends to exceed expectations over time. Stock prices thus tend to undervalue quality companies.

Early in my career, we were just pure bottoms-up stock pickers.

When it comes to valuation, there's only one thing stock investors really care about, which is earnings.

When valuation confidence falls, it means that stock markets are perceived as overpriced.

There is a disconnect between the performance in stock market and the performance in many companies.

The stock market is overpriced. Everything is overpriced. Junk is king.

I have never believed that large-cap stocks are too well followed to be anything but efficiently priced.

By the time they were done, EOG's land men had acquired half a million acres at $400 an acre. EOG thought it had acquired almost a billion barrels of oil.

Science without philosophy, facts without perspective and valuation, cannot save us from havoc and despair. Science gives us knowledge, but only philosophy can give us wisdom.

It's a complex fate, being an American, and one of the responsibilities it entails is fighting against a superstitious valuation of Europe.

Use the same measure for selling that you use for purchasing.

Economic theory dictates that the value of a company is basically the present value of its future profits. To estimate Facebook's value through its future profits, we need to have a view on its user growth and how this will evolve in the next 10 to 50 years.

Until there are tangible metrics for quantifying the real value of a token's utility, the gap between value and valuation will continue to defy conventional wisdom and conventional valuation methods.

The convertible note is a useful and common financing structure in Silicon Valley. It's a form of debt that is really more a type of equity - one where the valuation hasn't been determined yet.

Any successful company in the valley gets acquisition offers and has to decide whether or not to take them.

If the only tool we use to analyse what's valuable is a price tag, then those things that don't have price tags begin to look like they have no value.

I don't get attached to anything. I'm like a good antique dealer. I'm prepared to sell my most valuable table.

That which costs little is less valued.