You are probably wondering... do any S&P 500 companies have EV/EBITDA ratios of below 5 like Daktronics (DAKT) and Zedge (ZDGE)?
Yes, 17 companies in the S&P 500 or 3.4% of the index have EV/EBITDA ratios of below 5.
The median of these 17 companies saw their revenue decline by 31.55% last quarter.
Daktronics (DAKT) saw its revenue grow by 35.26% last quarter.
Zedge (ZDGE) saw its revenue grow by 7.96% last quarter.
The median S&P 500 company saw its revenue grow by 5.28% last quarter and trades with an EV/EBITDA ratio of 14.79.
Therefore, DAKT at an EV/EBITDA ratio of 4.803 and ZDGE at an EV/EBITDA ratio of 3.97 are very rare situations that we may never see again.
This is why we say they are "sure things" to become huge winners, even though there aren't any "sure things" in the market, and they won't become 10-20 baggers like our gold stocks will in the very near-future.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. This message is meant for informational and educational purposes only and does not provide investment advice.