Why “Cheap” Stocks Can Be Dangerous | EV/EBITDA vs P/E Explained Simply

Most investors think a low P/E ratio means a stock is cheap. But what if that “cheap” stock is actually hiding massive debt?
In this video, we break down the critical difference between P/E and EV/EBITDA—two of the most important valuation metrics used in stock analysis. Through simple examples and step-by-step calculations, you’ll learn how companies with identical profits can have completely different risk profiles.
We explain how Enterprise Value reveals the true cost of a business, why debt can distort valuation, and how EV/EBITDA helps uncover hidden financial risk that P/E ignores.
You’ll also see real investing logic in action: – How to identify when a stock is genuinely undervalued
– Why low P/E can be a trap
– When a high valuation might actually be justified
– The difference between equity value and total business value
If you want to avoid common beginner mistakes and start thinking like a professional investor, this video will change how you evaluate stocks forever.

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Видео Why “Cheap” Stocks Can Be Dangerous | EV/EBITDA vs P/E Explained Simply канала Money Mechanics