Need some input regarding technicals
你好，
had several interviews and bumped into 2 technicals which I didn't feel like I answered appropriately (wishy-washy).
Would appreciate if anyone could share their insight on how they would approach these questions:
1)
公司A：EV/EBITDA4
Company B:EV/EBITDA6
P/E: same for both
What can you tell me about these companies?
为什么是they tradingwith the same P/E yet differentEV/EBITDA?
2)
公司A：EBITDA保证金10％，ROCE：15％
Company B:EBITDAmargin 15%, ROCE: 10%
What do these metrics say about the companies?
Which company is more profitable?
您会投资哪家公司？为什么？
I'm not too familiar with ROCE so I obv fumbled the question a bit.
I had a general idea of how to answer these questions but I felt that it wasn't quite good enough.
Any help is greatly appreciated.
Thanks.
Comments (9)
bump
Q1 - The difference is capital structure. Company B has more debt, hence the largerEV/EBITDAratio while having the same P/E.
Q2 - I'm not familiar with ROCE either as my group doesn't use it so I'll let someone else who's more familiar with that take a swing at it.
What industry was this for anyway?
Q1: That's what I said as well but I felt like the interviewer wanted more. On top of that, he eventually added that both companies have THE SAME capital structure which compounded the question even more. Q2: It wasn't for a specific group, company only hires generalists.
同样对这些问题的好答案感到好奇（尤其是ROCE的问题）
First, I'd think of P/E as Equity Value/净利。如果两家公司都有相同的权益价值/净收入，但不同EV/EBITDA, then there could be a few reasons for this.
让我们假设（使我们更容易）两家公司都有相同的EBITDA。That means that company B has a higher企业价值。并假设其权益价值是相同的，那么B手头上有“更多”的净债务。
相反，让我们假设两家公司都有same Enterprise value。这意味着A具有更高的EBITDA, which from a superficial standpoint says A is more operationally profitable. I say superficial becauseEBITDA只是盈利能力的一个指标,它会吗be important to know what industry this company is in to see whether this is a relevant metric given the industry.
All else being equal, company A is relatively 'undervalued' compared to B.
There could be several reasons why the companies have the same P/E (again Equity Value/Net Income). The net debt adjustments could bring them back to similar market caps, or their net incomes could be comparable because company A (with the higherEBITDA) has higher DA or interest expenses. It could also be a combination of both, or none (since A could have Eq Value of 10 and NI of 2 and B could have Eq Value of 5 and NI of 1 yielding the same P/E ratio).
Hope that is somewhat helpful...
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Learn moreAs for your other question, this is straight from investopedia:
对于初学者来说，ROCE是比较公司相对盈利能力的有用度量。但是ROCE也是一种效率衡量；ROCE不仅可以按照利润率的比率计量利润率，还可以衡量使用使用资本数量后的盈利能力。为了了解货物在就业资本中的重要性，让我们看看一个例子。假设公司A的销售额为$ 1,000 $ 100，而B公司的销售额为150美元。就纯盈利能力而言，b具有15％的利润率，远远领先于A，其利润率为10％。但是，假设A雇用了500美元的资本和1,000新元。A的ROCE为20％[100/500]，而B的ROCE仅为15％[150/1,000]。ROCE测量结果表明，公司A更好地利用其资本。换句话说，它能够从IT雇用的每一美元资本中挤出更多收益。 A high ROCE indicates that a larger chunk of profits can be invested back into the company for the benefit of shareholders. The reinvested capital is employed again at a higher rate of return, which helps to produce higher earnings-per-share growth. A high ROCE is, therefore, a sign of a successful growth company.
您可以在此处找到完整的文章：http：//www.investopedia.com/articles/stocks/05/010305.asp#axzz1siqqaq3
cheers.
Is this for aSummer Analystposition?
Esbanker可能会错过的东西。...如果其他所有内容都是平等的，但是您的面试官坚持认为，A和B公司都“相当重视”并且具有相同的资本结构 - 这意味着A公司A公司更为集中（即。low fixed asset turnover) and has a较高的折旧费用。Its higher operational profitability is offset by that depreciation expense so that earnings vis-a-vis company B is the same.
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