EBITDA: Secret to investing in 10x companies EARLY like AMZN & TSLA (Ep. 407)

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EBITDA stands for earnings before interest, taxes, depreciation, and amortization, and can be used as a measure of company’s financial performance (ie., alternative to net income). I discuss the pros and cons of using EBITDA as a valuation metric, and apply it to AMZN (Amazon Stock) early days 2011-2015, and discuss how it can be used for other companies like TSLA.
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15 сен 2024

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Комментарии : 320

@Dave_Lee 3 года назад

For those asking what site I'm using to show charts from the video, it's finbox.com/?r=8039e2b . I just started using the site, so I'm can't tell you exactly how good the site is or not.

@PS-hl6ml 3 года назад

What’s the charts you’re using in the video?

@stefanooldani74 3 года назад

Hey Dave, yes please do more deep dives into other companies especially disruptive companies without the need to deploy lots of CAPEX. I guess EBITDA wouldn't work as well for Lemonade or Palantir etc? Great Video! Would love to see more videos like those from you. Love your passion -- been following you for a while.

@gressex7 3 года назад

Would love to see this analysis for Tesla and Palantir.

@poodlepirate8928 3 года назад

Palantirs are only relevant in the third age of Middle Earth

@ericmanarintr6484 3 года назад

Yahhh More analysis!!!

@nakatanakatanakata 3 года назад

AMD riding some waves

@xerostomia907 3 года назад

Maybe Cathy Wood putting Palantir into every ark fund will Wake these guys up to the next “technology” company that will exponentially grow.

@Planaxe 3 года назад

I did it for Tesla, and I can surely say that they are immensely undervalued right now. Elon said that Tesla will hit 20mil produced cars in 2030 so I did the calculations accordingly. Amazon, at the start, had an EBITDA multiple of 50-60, that’s where Tesla is right now. So if we take a 50 multiple we get to an intrinsic value of 2825$ per share. Now you can be super conservative and take a 25 multiple, this is where Amazon is right now, after all those years of growth. A 25 multiple gets us to 1412$ per share. Let’s say Tesla only gets to produce 10mil cars in 2030, so half of their target. (Which is not likely) With the 50 multiple we get to a 2079$ stock price And with 25 multiple we get to half of that, 1039. In conclusion, Tesla is still undervalued by 48% in the worst of the worst case. And 303% undervalued if everything goes to plan. P.S. I only included the car business, so it will likely be much higher than that.

@limmike5339 3 года назад

Hi Dave. Your EBITDA presentation on Amazon should continue with that of Telsa. Show us where Tesla is now in relation to Amazon earlier days . Looking forward to it. And giga appreciation and thanks always .

@PhilippeLarcher 3 года назад

yes it should be replicated over 10+ examples now

@michaelphan3521 3 года назад

Yes please. I like to see an EBITDA video on TSLA, PLTR, AMD.

@marcel5125 3 года назад

Stop pumping PLTr

@talkswithandy9017 3 года назад

Love this video. Would love to hear your thoughts on COIN as they had a killer quarter. In my opinion making more videos about "how to value growth companies" like this one and ebitda, would be extremely valuable in helping us get to a higher plane of understanding!

@matthewkelly4107 3 года назад

I was looking at coin, qtrly underlying profit actually went down despite increased revenue, due to blow out in expenses. The profit per share change is driven by tax credit usage. Maybe still good long term but this qtr not as good as thought

@davidpessina6563 3 года назад

COIN ONLY CONCERN IS REGULATION OTHER THAN THAT COIN CAN BURN MONEY HUGE REVENUE BILLIONS HUGE 🌋 ITS A BUY AT CURRENT PRICES ✨🕺

@yuhnarnshen4311 3 года назад

Definitely would love to see more examples of valuing companies this way, Thanks Dave!

@kevinwongrealestate3064 3 года назад

Hi Dave, please share any future 10x companies that you have found, we'd love to learn from you

@jefffloyd100 3 года назад

I would like to see this approach used on Palantir and Tesla.

@marcel5125 3 года назад

Stop pumping PLTR

@zaydevans2077 3 года назад

@@marcel5125 why no hating on Tesla? They’re both good companies a lot of the viewers are invested in therefore has the best mass impact on his audience imo unless you’re going broad or talking about a case study like amazon

@tamirpdx 3 года назад

Great video Dave. I appreciate you take the time to explain and educate us with metric we can use on our own.

@JesusPlaza 3 года назад

Would love to see that approach on ark’s top positions like SQ, TDOC or even Lemonade. Thanks

@mihailomaksa2184 3 года назад

Also PATH will be great considering they hold it in all of their ETFs.

@ziconglim3362 3 года назад

Love your content, Dave. Hope you'll cover bad growth companies too, what are the common traps that people fall into while evaluating growth companies

@rolandborbely8969 3 года назад

Indeed, would be useful/learnful.

@wealthmoney-liveyourriches4669 3 года назад

Yes. This!!

@kehindemajolagbe6581 3 года назад

Hello Dave -- great perspective as always. Would love to see a similar analysis on Tesla, Square, and Lemonade. Thanks!

@dr.e425 3 года назад

Square would be awesome

@AlexResendiz17 3 года назад

Thanks Dave for everything you do!

@ankitdrolia9102 3 года назад

Hey Dave. Really an amazing video. Would love you to do this for other companies. The bottom line is- business model is the most important factor than other metrix.

@adrwong8 3 года назад

Brilliant Dave! I was in my mba finance course in 2012 and Amazon was talked about all year. Thinking textbooks were gospel and P/E mattered. Regrets and shame in my pitch of overvalued Amazon. Fortunately I am on the tesla hype train thanks to your insights since 2016

@Dannydrinkbottom 3 года назад

Free knowledge. I appreciate RU-vidrs like Dave giving such vital information.

@TomasJogin 3 года назад

Yes please Dave, show us some examples of companies that fits this description, and also some companies that are in that early stage that might turn out to do so.

@sheikhennotstirred 3 года назад

Hi Dave, where are you looking at this data? I like the format

@fredwikstrom2955 3 года назад

Thank you Dave! Would love to see a similar run through of EV/EBITDA on Tesla

@rolandborbely8969 3 года назад

Dave, it's great that you sometimes create such kind of vids as well, educating us on how things (eg. accountancy) works in real life. I learnt it at school, but without context, so made no real sense. Thanks for these interesting topics as well.

@rightbrainblok 3 года назад

Hi Dave - huge fan of your unique way of approaching thought processes, and have applied many of your concepts (e.g., systems thinking, CEO / management ambition, disruptive growth) to Palantir. I know you're not a huge fan (although you have a small position) - but I after studying this company, I have such high conviction for their long-term growth horizon. Would love if you could take a really deep look at their product and their operating model. Much Appreciated 🙏🏻 - B

@tylerbelyeu846 3 года назад

Please! Make more of these videos, this is literally gold.

@johnarmstrong3451 3 года назад

Dave love this. Please do more of this on other companies. This really gets to the core of things

@markumbers5362 3 года назад

Yes it would be great to examine EBITA on any new company that will not experience challenging ongoing expenses.

@jrodd0077 3 года назад

Amazing Dave, Wow you could do a whole series on this topic like.. Individual companies like TSLA, PLTR, AMD and then compare them within their sector NIKE, LULU or AMD, NVDA. This would make it so easy us to know where to invest… Lov it👍👍

@robertoc.j.5563 3 года назад

Hi Dave, yes please go ahead and share follow up videos applying this method to other high growing companies. I would recommend besides TSLA; SQ, COIN, PLTR, SHOP or any other potential generational companies that you consider.

@endeuinable 3 года назад

This is one of the most useful and insightful videos you've released in a long time Dave. Thank you for the crystal clear clarity and explanation of this metric.

@geertsnijders5042 3 года назад

Me, I'm not looking so much at financial ratios but rather the strategic position. Tesla is a perfect example: they don't make strategic mistakes, so far. And they are able to execute their strategy bottom-up vigorously. When I first heard about them in 2013 I knew within 5min they were the solution to getting rid of big oil... for me personally that is. By offering a serious (long range) alternative to ICE vehicles. So I invested in a model S and have enjoyed it ever since. Since last year, I'm switching over to Tesla stock and brace myself to go to the moon, hahaha

@DanielRucci 3 года назад

Thank you, Dave. It’s hard not to like all your videos. You are providing immense value to a generation of investors.

@Zendefone 3 года назад

Thanks for these immersely helpful vids Dave! Appreciate it.

@kgl5289 3 года назад

Yes. please provide more examples on other growth stocks that suitable to use the EBITDA model to evaluate the actual value of the growth stock. like Tesla and others etc. Great stuff. i am exciting about this. Thank you.

@endeuinable 3 года назад

It would be interesting to hear you briefly present a growth stock case for each of the caveats you mentioned actually makes EBITDA not a suitable metric. For example one case where the business is highly leverage, another business where economies of scale do not apply, etc...

@gdnasp6359 3 года назад

Dave you are a fountain of information and learning to us all. Thank you for taking the time to explain the fundamentals on a level that helps your viewers actually get it - an application based on reality.

@stevem3439 3 года назад

Yes, pleeez Dave. More companies, obviously TSLA, but others too that show promise.

@mind188 3 года назад

thanks Dave, i enjoy your more educational videos and a deeper comparison between tesla and amazon is needed

@TravisCampbell 3 года назад

Thanks Dave. Interested in more like this. Could you also share the site you’re using with the charts plotting the ratios? Thx.

@guybeaver 3 года назад

Hey Dave--Since LMND seems to be so misunderstood in terms of standard valuations I'd really be interested in your thoughts on it.

@ziconglim3362 3 года назад

Interesting point of view. Currently Tesla EV/EBITDA ratio is 122. Does that mean that its overvalued?

@cellocraze 3 года назад

I would say Tesla is like Amazon in 2014-15. They are just starting to become profitable.

@audience2 3 года назад

Tesla have a lot more growth potential now than Amazon back in 2015. Move it back to 2004-2005.

@cellocraze 3 года назад

@@audience2 definitely agreed!

@zaydevans2077 3 года назад

When you compare Tesla to amazon I think about amazon making the best store on the internet, then doing cloud etc, Tesla have done cars and won in that now it’s time for either fsd to come to fruition or energy to take off before Tesla get that second win highly diversifying the revenue stream.

@chaneliza6075 3 года назад

This is one of the best video from you , Dave! Please share more, thank you!

@ajirobajutosin6753 3 года назад

Thanks Dave, very clear and appreciate your talking about caution also. The business model and execution is also important. Cool video.

@allanfan7412 3 года назад

100% we would all love an analysis on Tesla!

@edwardtse8631 3 года назад

This is fascinating. It would be nice if we see where tesla's EV/EBITDA trend now. Also, can you also explain Gary Black's way of valuation? He explained in his tweets but I am still very confused.

@b4yn 3 года назад

An example that would be interesting would be Corsair, which has both a low PE, and a low ev/ebitda with decent growth, though maybe that's a bit different from companies I usually see you talk about. Lmnd would interesting as well.

@alexandrei1176 3 года назад

What are your thoughts of Palantir PLTR deploy AI at scale so efficiently?

@marcel5125 3 года назад

Stop pumping PLTR

@GlenMacDonald 3 года назад

Very helpful. Would love to see this applied to Tesla. Thanks for everything.

@zackenyart6782 3 года назад

Hi Dave, I would love to see a video on this regarding TSLA stock. Thanks for all you do.

@TheAuuuMan 3 года назад

Yes, pls apply them to other companies. Some additional practical examples will help. Also, what is that website that u used?

@KTmin3 3 года назад

This is such a good video! Alot of Private Equities use EV/EBITDA when valuing private companies!

@scorpionnemo 3 года назад

Yes please apply to TTCF, PLTR, and Corsair

@zacleongzehao7285 3 года назад

Hey Dave, thanks for the video. I think most professionals in the finance industry use EV/EBITDA multiple pretty regularly. The difficulty comes about in asking if AMZN was really worth 40-60x EV/EBITDA at that point of time of valuation, which I hope we can see in your future videos. Hindsight is always 20/20

@drustan6890 3 года назад

should i use adjusted EBITDA or EBITDA? because both yield different results.

@Moments-in-Frames 3 года назад

Great video as usual. Would love to see this applied to Palantir and Airbnb

@NachonNachin 3 года назад

Excellent Dave! Putting together this analysis with disruption as defined by ARK can bring so much clarity in this age of FUD. I would like you to include a couple of companies in the ARKG ETF. They are two steps behind Tesla in their march towards global domination

@syedatharhussain7408 3 года назад

Awesome video Dave. We would love to hear you if you make more educational vid like this. You have such deep insights please keep sharing. It will help immensely. It's like 50x -100x value creation.

@rajbirsingh7241 3 года назад

Hi Dave could you do a video applying EV/EBITDA to AirBnb? Without diving into the financials AirBnb seems like a no brainer long term investment, but I’d be curious to see your evaluation of the financials specifically EBITDA. Thank you!

@Tbroit 3 года назад

Please show the same charts for Tesla, thanks for all the info Dave!

@JorritvdB 3 года назад

SUPER helpful content! Thanks Dave! Looking forward to more content like this.

@janfm8670 3 года назад

Yes please. on the example of palantir. Do they have efficient ability to scale? That's what they try to proof without telling it.

@CaptChuck-uy6uv 3 года назад

Yes! Tesla, Palantir,

@meetgeorge5622 3 года назад

Would love to see you do an deep dive on the EBITDA analysis on Tesla for the past 4-5 years.

@msizziekay 3 года назад

Awesome - yes, would definitely love more videos of this kind :)

@dependra7 3 года назад

Your best video so far, thank you for sharing!

@timminore2126 3 года назад

Thanks, Dave! I’d also like to see more videos on this topic. Particularly on companies like MELI SHOP SE & SQ.

@NeuraPod 3 года назад

Fantastic video. Thanks Dave.

@brightmangroup1003 3 года назад

Yes please… more deep dives into this topic, your insights are essential listening

@estevecorcoy9599 3 года назад

Yes can you do a video applying this theory with LEMONADE and FIVERR? Could they be generational companies in the future

@shortclimberbeta 3 года назад

Could you please analyze SQ, Tesla and Shopify? And perhaps mrna? How do you know if a ev/ebitda ratio is reasonable or too high? Thank you so much and have a great weekend.

@zhouyou28 3 года назад

Yes, do more of this examples for companies like Tesla etc

@austinfinance3447 3 года назад

Love this company analysis using EBITDA! Also, thanks for sharing the site that you used for your charts

@sanjayaiyar4351 3 года назад

Excellent analysis Dave.

@codylaursen2987 3 года назад

Yeah, +1 vote to apply this principle to TSLA!

@GordonShumway4463 3 года назад

very interesting video. you flew over EV a little too fast for me

@PositronQ 3 года назад

Another good case/use for EBITDA is palantir

@andrewsaint6581 3 года назад

Brilliant video. I know you love the long form but I tend to dodge them due to my work pattern because I can't do them justice. This was interesting and actually something I figured out myself. I was transport manager for a haulage company. That's an industry where depreciation is a big deal and I realised that ignoring it was a stupid thing to do. You're exactly right in the overview of Amazon, my little knowledge actually did put me off amazon and I believed the FUD. Great info thank you.

@sandeepsharma82100 3 года назад

Absolutely yes please Dave, please do educate us further on this topic with more examples..I miss those videos of review of new businesses (SQ, PTON, LMND etc)

@30guarino 2 года назад

All those you listed are getting smoked in the market …. Those sound like Meet Kevin stocks lol

@sandeepsharma82100 2 года назад

@@30guarino IThis is a comment from 5 mo back. Money was made and these dumped. Meet Kevin... I don't invest based on real estate agents

@jacobtan4932 3 года назад

Hi dave, please do an analysis on TSLA, PLTR thanks!

@AC-ge2tr 3 года назад

Yes! This is a very good framework. Also, price/operating cashflow for growth companies

@lenjohnson5343 3 года назад

Thanks Dave, very informative.

@christinafelker763 3 года назад

Thank you for explaining this. Most helpful!! Tesla Fan Grandma

@rajeshtibrewala5514 3 года назад

Dave, great video on Amazon valuation using EBITDA; could you please analyze Tesla and a couple other newer, potentially generational, companies. Thank you

@skyeparker5822 3 года назад

I have been scratching my head about EDITDA for a while now. Thanks. Definitely interested in pontificating on the usefulness of this metric.

@drustan6890 3 года назад

should i use adjusted ebitda or ebitda only? because both are drastically different. palantir's adjusted ebitda is positive, but ebitda is negative.

@rosstessien6677 3 года назад

Hey Dave, TESLA please. I'm curious about the method you showed, but also, multiplying by the growth rate and maybe the growth rate squared.... using perhaps 1 plus the growth rate, result squared. For tesla with 100% growth rate, 1+1 = 2, so 2 squared is 4. 4 times ebitda vs a legacy company like Ford that's stagnant or shrinking market, say negative 20% gives (1 + (-0.2))= 0.8 squared = 0.64 as the ebitda multiplier. This way shrinking businesses are punished and rapidly growing businesses are rewarded, regardless (sort of) of the net profits. In other words, the method needs to reward tesla and penalize gm and Ford types of companies

@MikeBarnhill 3 года назад

Really insightful and helpful. I took a lot of notes. Thanks so much Dave.

@sc000ter000 3 года назад

thank you for this video. Please tell us how to find enterprise value (market cap).... and YES! do more of these videos! This was an WONDERFUL video!

@luv2race25 3 года назад

Stock price times shares outstanding is market cap. Market cap minus cash, plus total debt is EV

@HappyQuokka8 3 года назад

Hey Dave, you explained it in such a simple way and it’s easy to understand. What’s the website or tool that you used in the video? Thanks.

@derekk1287 3 года назад

Yes, I would like to see Tesla analysis.

@conniesaunders17 3 года назад

Please continue to analyze companies using this.

@poodlepirate8928 3 года назад

Good episode Dave! Could you do an episode on who you think the next Tesla or Amazon is?

@poodlepirate8928 3 года назад

Dave isn’t telling. It’s a secret 😂

@DM-bn6bf 3 года назад

Hey Dave, I'm curious your thoughts on SoFi? I'm growing more bullish on this company and find value in the CEO's vision. Thanks

@TimothyParker1 3 года назад

Love to see this on TSLA

@ehudklein 3 года назад

please apply it to tesla!! who ae other generational companies you see these days?

@kiranjonns7790 3 года назад

Shopify and PLTR Dave.

@DominikSipowicz 3 года назад

Can you show the comparison on EBIDTA on Amazon and Tesla with PE and market cap. So 3 lines with 2 companies and add commentary on it

@ajkhanmp69 3 года назад

Would love to see 1 on AI3 or SNOW.

@rangarajsrikant3189 3 года назад

Thanks a lot Dave. Very insightful. Doing ev/ebidta for mid caps now and (tesla) would be useful. Also. Does it make sense to do adjusted ebidta(sbc is negated).

@barrychertov5648 3 года назад

Please do EBITDA analysis on TSLA!

@cellocraze 3 года назад

Would love to see your opinion and analysis on PLTR.

@tonysenterprises1360 3 года назад

Love this! Anyone know what charting software Dave was using? Thx.

@pablovitolo9545 3 года назад

Awesome like always! We need more of this change of perspective

@Dee-ou7vd 3 года назад

I now understand why $SOFI CEO Anthony Noto mentioned using EBITDA as a better metric for analyzing his company during his Q2 earning call. Great Job Dave. Can you please apply it to SOFI. Thanks

@30guarino 2 года назад

$11 buy the dip