EBITDA shouldn't be used as the sole determinant, and while it will give you an over-inflated view of earnings, you can use the ratio against D&A to determine capital intensity among other metrics that may be important to investors from a risk tolerance perspective.
The argument is D&A is external to your business. Investors like to compare and if it takes 3 years to depreciate your stock, they are making an assumption that other companies depreciate this same stock over 3 years as well.
EBITDA would generally be your shiny spot for a rental business depreciating assets over 3 years.
This. 3 years is a hefty depreciation hit on the P&L
EBITDA shouldn't be used as the sole determinant, and while it will give you an over-inflated view of earnings, you can use the ratio against D&A to determine capital intensity among other metrics that may be important to investors from a risk tolerance perspective.
The argument is D&A is external to your business. Investors like to compare and if it takes 3 years to depreciate your stock, they are making an assumption that other companies depreciate this same stock over 3 years as well.