{
  "docId": "019dd923-622c-750b-8b9b-15d71754f3a1",
  "docSlug": "2fca39b214c5",
  "documentTitle": "N/A",
  "authorId": "99_Other",
  "authorName": "10X EBITDA",
  "documentKindSlug": "other",
  "documentKindLabel": "Other",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2025-02-01 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 42,
  "pageCount": 82,
  "prevPage": 41,
  "nextPage": 43,
  "slideType": "other",
  "function": "other",
  "density": "overcrowded",
  "nDataPoints": 0,
  "notes": "This is a page from a technical interview guide for finance roles.",
  "elementsJson": [
    "paragraph"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9b-15d71754f3a1/42",
  "deckHref": "/decks/019dd923-622c-750b-8b9b-15d71754f3a1",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9b-15d71754f3a1.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9b-15d71754f3a1#slide-42",
  "components": [
    {
      "bbox": {
        "h": 0.08,
        "w": 0.8,
        "x": 0.11,
        "y": 0.77
      },
      "kind": "paragraph",
      "text": "164. In what circumstances would you use P/E over EV/EBITDA? \"I would use P/E over EV/EBITDA if the company is very capital intensive. This way we can take D&A into account. Another situation I would use P/E is if peers have wildly different EV/EBITDA but very similar P/E.\"",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "74d5ed6f-9a19-4a4e-8ad1-a5e6ef12bb24",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.8,
        "x": 0.11,
        "y": 0.08
      },
      "kind": "paragraph",
      "text": "159. If Revenue grows by 10% and Enterprise Value stays the same, how would EV/Revenue change? \"It would decline by 9%.\" You can test this with sample numbers.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "7a4d5355-087b-4bfd-a39b-b699737612cd",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.8,
        "x": 0.11,
        "y": 0.64
      },
      "kind": "paragraph",
      "text": "163. In what circumstances would you use EV/EBITDA over P/E? \"First, I would use EV/EBITDA instead of P/E if the company has negative Net Income or EPS. Second, I would use EV/EBITDA if the companies have very different capital structures. I would also use EV/EBITDA in M&A situations because the deal will likely alter the capital structure.\"",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bdf4903c-83e0-4927-8c13-7bf69eb73ae1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.8,
        "x": 0.11,
        "y": 0.46
      },
      "kind": "paragraph",
      "text": "162. In what circumstances would you use EV/Revenue over EV/EBITDA? \"First, I would use EV/Revenue if the company has negative EBITDA. This is also the case if the EBITDA is so small that it results in an unmeaningfully high EV/EBITDA (i.e. 2,000x). Second, I would use EV/Revenue if the stock price is more reactive to this company's revenue growth than profitability.\" Financial Modeling Course References: Course 3, Lesson 20 (Non-Meaningful Multiples)",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "dbac27cd-12cf-4d39-a441-31d5e076d847",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.8,
        "x": 0.11,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "160. How do you calculate how the \"street\" is valuing a company on a multiple basis? \"I would divide the company's current valuation by the median of equity research analysts' estimates. The median of equity research analysts' estimates is known as the 'consensus'. By dividing the company's current valuation by the consensus, I can figure out how the street is valuing the company.\" Financial Modeling Course References: Course 3, Lesson 21 (Consensus)",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "df1eb85b-3798-469a-9fc1-8816153cb774",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.8,
        "x": 0.11,
        "y": 0.35
      },
      "kind": "paragraph",
      "text": "161. Are forward consensus multiples based on adjusted or unadjusted earnings (i.e. EBITDA vs. Adjusted EBITDA)? \"Forward consensus multiples are usually based on adjusted earnings. That's because equity research analysts usually project EBITDA and EPS on an adjusted basis, normalized for extraordinary items.\"",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fda3ae1c-3ab0-4a02-a23c-10455d89e6c2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.35,
        "x": 0.11,
        "y": 0.96
      },
      "kind": "source-note",
      "text": "The Core Technicals Guide | www.10XEBITDA.com",
      "attrs": {
        "numbered": true
      },
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "da2f5313-4499-4cad-bb19-89f8aa02a137",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.25,
        "x": 0.68,
        "y": 0.02
      },
      "kind": "title",
      "text": "III. Valuation Multiples A. General Understanding",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fa6a6313-f8ad-4c4a-b707-14a19188fa58",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "2x2 matrix",
      "slug": "matrix-2x2",
      "agent": null,
      "layer": "slide",
      "matchId": "51ccbde7-1438-4f8e-b83d-5dd339ed9b1b",
      "evidence": "pair metrics on an apples-to-apples basis",
      "confidence": 0.5
    }
  ],
  "frameworks": [],
  "arcBeats": [],
  "loops": [
    {
      "to": 45,
      "from": 32,
      "name": "Golden Circle",
      "slug": "11-golden-circle",
      "bestFor": "Visionary leadership, brand positioning, mission statements",
      "matchId": "83136bdf-071e-4db7-8834-0eccabf5f975",
      "evidence": "The guide explains enterprise value and equity value concepts.",
      "position": 1,
      "objective": "Understand enterprise value and equity value",
      "structure": "The Why (Belief) -> The How (Process) -> The What (Result)",
      "confidence": 0.6,
      "description": "Invert the typical pitch by starting with why you exist, rather than what you do"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}