Is There A Relationship Between EV/EBIT and Returns on The Danish Stock Market?
The study can statistically certify that there exists a negative relationship between EV/EBIT-ratio and returns among stocks on the OMX Copenhagen Exchange between 2011-2021. It can also be concluded that EV/EBIT should not be used as the single factor when making investment decisions due to a low r-squared value. Portfolios consisting of low EV/EBIT companies managed to outperform high EV/EBIT po