As we approach the 20th anniversary of the Tech Bubble peak (March 10, 2000), we’re increasingly feeling a sense of déjà vu. Since the beginning.
Government reports are questionable, the science is in hypothesis-stage and historical analogies don’t quite fit, but just how the coronavirus epidemic/pandemic plays out may determine.
There is a market adage that goes something like, “Bull markets are born in fear, and die in euphoria.” In February 2018, while some were.
The difference between pro forma and GAAP can be benign or deceptive, but the only way to know is to dive into the details. Whatever the amount or source of the difference between GAAP and pro forma, earnings (or EBITDA) it is not possible to judge the relative value of two companies without measuring them on level footing.