EBITDA

[SlowHabit]

[ QUOTE ]
Pls evaluate for me the investing prospects for: Comcast, Sprint, MCI, TCI, in the mid-late 1970s without using EBITDA or similar metrics. Or Mirage Resorts/Wynn years before their casinos actually opened and they had years of buildout and CapEx expenses.

When a company has no earnings and only real assets are some 'newly minted technology', or vacant unfinished building, what do you use?

http://finance.google.com/finance?client=ob&q=WYNN
OpIncome negative 2001-05 inclusive.

[/ QUOTE ]
Najdor,

Reading your request, I think I now *understand* why Buffett doesn't use EBITDA.

1. He doesn't like a company without real earnings; he wants earnings now, not forecast. "a bird in hand is worth two in the bush."

2. He also doesn't like capital-intensive assets. Over time, maintaining those assets and the risk of inflation are going to be tough for a business to be profitable.

3. The companies you gave me are too tough for me to try to evaluate.

Thanks! [img]/images/graemlins/cool.gif[/img]