FV: Future value

EBITA: Earning before interests, taxes, and appreciation

FCF: Free cash flow

Yield: can be thought as return, usually bond yield or dividend yield.

谢谢

We often use some indicators such as sales and EBITDA to measure the profitability of the company. Apparently, the relation between the company’s profitability and ratios like FV/SALES and FV/EBITDA should be negative. Neither SALES nor   EBITDA is a misleading number. We use FCF to be considered as the real income the company made. If FCF is lower than ever, the company might be in the recession or decline stage. And if FCF is negative, the risk of this company is too large and absence of competition.