I think the more appropriate way to value AMA is to use EV/EBIT....

I think the more appropriate way to value AMA is to use EV/EBIT. AMA is an excellent business. Regardless of its liquidity and debt, its ROE and ROIC are impressive.

At today's price, it implies an EV/EBIT multiple of 8x, which is not cheap, in my opinion. You still can make money if AMA invests its cashflow wisely, but the risk/reward is far worse @15c.

It is when a thing finally became a good story did people start to pay attention. Be aware, the easy money has been made!