Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
TheStreet.com has published an article saying that Sq is massively over priced because of an accounting practice. I don't quite understand it and wonder if any Fools who own Sq can shed light.
Here's the gist of it:
"The majority of Sq's adjusted EBITDA gains have come from its share based compensation being backed into the EBITDA figure. Assuming that share-based compensation is a running cost of management (which it is), without this add-back, Sq's EBITDA figure would have actually fallen to 13 million in the Q3 2018 quarter"
"Lastly, we should bear in mind that this EBITDA figure also excludes SQ's annual capex requirements of 25 to 35 million. Consequently,, once capex is factored in , SQ is a cash burning machine that is mightily overpriced."
There it is Fools. Anyone have a comment?
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.