- RBC Capital Markets uses a metric called “Crucial Combo” to measure the stock value of the companies it follows.
- Crucial Combo simply combines the company’s revenue growth and earnings before interest, tax, depreciation and amortization (EBITDA) margin each quarter.
- Based on the number, the following 9 companies have positive Crucial Combo scores: Alibaba, eBay, Akamai, Shopify, Facebook, Netflix, Amazon, Google, and Spotify.
- Those with high Crucial Combo scores are proving to be resilient during the COVID-19 pandemic.
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“Crucial Combo” sounds like a special lunch offer at a fast-food joint, but according to financial analysts at RBC Capital Markets it’s the recipe for a special class of tech stock.
RBC Capital Markets likes to use a metric called Crucial Combo when evaluating company stocks — and it says those with high scores are proving to be some of the most resilient stocks during the COVID-19 pandemic.
Crucial Combo scores are calculated by simply combining the company’s revenue growth and earnings before interest, tax, depreciation and amortization (EBITDA) margin each quarter.
In a note published on Thursday,