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calculate ratio for enterprise value to ebitda Rate this Topic:
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bizfix
Posted : Saturday, September 15, 2018 12:43:34 PM
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Joined: 8/27/2014
Posts: 22

i was wondering in a column can i create a formula to get the ratio of ebitda to enterprise value for a stock. Also can i create easy scans with fundamental data

Bruce_L
Posted : Monday, September 17, 2018 10:39:36 AM


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Joined: 10/7/2004
Posts: 65,138

You can use the build in fundamentals as scan conditions, but there really isn't a way to take the ratio of two different fundamentals to create your own third fundamental.



-Bruce
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bizfix
Posted : Monday, September 17, 2018 10:56:03 AM
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Joined: 8/27/2014
Posts: 22

SO IF I WANTED TO FIND STOCKS TRADING BETWEEN 3 AND 5 TIMES EBITDA TO ENTERPRISE VALUE HOW WOULD I WRITE THE EQUATION THNAKS 

Bruce_L
Posted : Monday, September 17, 2018 11:12:27 AM


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Joined: 10/7/2004
Posts: 65,138

There isn't any sort of built in way to do so, but there is a bit of a complicated workaround.

Overlay Operating Income Before Depreciation (EBITDA) and Enterprise Value into the same pane and scale as each other.

Add two 1-period Envelope Channels to Enterprise Value as plotted on the chart. Set the Width (%) setting to of one to 200 and the other to 400.

Then click on the 200% Envelope Channel and select Create Condition. You want EBITDA to be Above Envelope Channel 1 200 Chan Top. Select Scan to create a new scan based on your new condition.

Then click on the 400% Envelope Channel and select Create Condition. You want EBITDA to be Below Envelope Channel 1 400 Chan Top. Select Add to... | Add to Conditions so you can add the condition to the scan you created earlier.

That said, at least for most of the symbols I have looked at, it seems like taking the ratio of Enterprise value to EBITDA would make more sense if you are interested in ratios between 3 and 5. You would just need to switch the indicators to which you applied the evelope channels and conditions in order to do this instead.



-Bruce
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