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Careful when using PE Ratio, doesn't account for the company's debt
Written post: http://stockpickinginsights.com/market-cap-enterprise-value/
I recommend you to use Enterprise Value because it accounts for the company’s debt. This means I use EV Ratio instead of PE Ratio in any analysis. You can think of EV Ratio as a debt adjusted PE Ratio.
By Stock Picking InsightsCareful when using PE Ratio, doesn't account for the company's debt
Written post: http://stockpickinginsights.com/market-cap-enterprise-value/
I recommend you to use Enterprise Value because it accounts for the company’s debt. This means I use EV Ratio instead of PE Ratio in any analysis. You can think of EV Ratio as a debt adjusted PE Ratio.