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A question on valuation.

Nathan Mentioned in his valuation " I peg the shares at seven times their price-to-cash-flow and enterprise-value-to-EBITDA multiples. "

The last year and the current TTM has negative cash flow. Also, why would anyone chose ev to EBITDA multiple for valuation? Especially for a company that is capital Intensive and cyclical? The money provided by depreciation will be used and some more by new capital needs. Being cyclical margins will be all over along with revenue but interest and depreciation costs remain same irrespective of where you are in the cycle.
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