Using the P-E ratio as well as the EV-EBITDA ratios

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How do you make recommendations as to whether investors should buy/shell shares based on share price estimates calculated using the P/E ratio as well as the EV/EBITDA ratios if the 2 ratios yield different results. I.e: The EV/EBITDA ratio estimates a share price lower than that of actual selling price, whereas the P/E ratio estimates the share price of the firm to be higher than that of actual selling price?

Reference no: EM132068535

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