RT Journal Article SR Electronic T1 Methods of Valuation: Myths vs. Reality JF The Journal of Investing FD Institutional Investor Journals SP 7 OP 14 DO 10.3905/joi.2010.19.4.007 VO 19 IS 4 A1 Stanley Block YR 2010 UL https://pm-research.com/content/19/4/7.abstract AB The author takes the position that too many entering the profession of finance are incorrectly trained in valuation methods. The price/earnings multiple dominates the investments material, while EV/EBITDA goes largely ignored. In this survey of 1, 209 financial analysts, 41.7% use the price-to-earnings ratio as their primary metric, while 36.2% prefer EV/EBITDA. More importantly, the survey participants predict the latter metric will be the primary measuring tool for the future. All of this is going on in spite of the fact that of the 10 leading investment texts, only one has EV/EBITDA in the index or glossary. The survey also shows a resounding negative attitude toward new measures of income proposed by the International Accounting Standards Board (which would be used in valuation models in the future).TOPICS: Security analysis and valuation, quantitative methods, global markets