Zillow’s Adjusted EBITDA – It Ain;t What You Think by Cook & Bynum
When thinking about equity valuations, beware of metrics that divert attention from the “owner earnings” available to shareholders. Metrics like adjusted EBITDA are often just earnings before some other real costs.
Zillow ($Z) – a great poster child for “adjusted EBITDA”. They list 9 ways/things it doesn’t include!
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