Fundamentals

  1. How can the price-to-earnings (P/E) ratio mislead investors?

    A low P/E ratio doesn't automatically mean a stock is undervalued, just like a high P/E ratio doesn't necessarily mean it ...
  2. How can return on investment (ROI) calculations be manipulated?

    Check out an example of how the return on investment (ROI) for similar investments can vary greatly, depending on how the ...
  3. Is there value in comparing companies from different sectors by using the debt-to-equity ...

    Find out why using the debt-to-equity ratio for reviewing companies doesn't always make for an apples-to-apples comparison.
  4. How do interest rates affect the weighted average cost of capital (WACC) calculation?

    The interest rate is one of many external factors that can change the inputs in the weighted average cost of capital (WACC) ...
  5. Day Trading: Impoverishing Dilettantes Since 1990

    Operating a day-trading account is like owning thoroughbreds or an America’s Cup team. You can't just enter the arena with ...
  6. What is considered a high debt-to-equity ratio and what does it say about the company?

    Learn how to make sense of the debt-to-equity numbers of a company when looking for good investment opportunities.
  7. What are the best uses for trailing EPS, current EPS and forward EPS?

    The earnings per share (EPS) indicator has three basic types that can alert you to past, present and future health of a company.
  8. How can the current ratio be misinterpreted by investors?

    Statistics can be misleading, and numbers on the balance sheet are no exception. Find out how the current ratio can confuse ...
  9. What's the difference between weighted average cost of capital (WACC) and internal ...

    Both weighted average cost of capital (WACC) and internal rate of return (IRR) are great measures for assessing value, but ...
  10. What are the main differences between the current ratio and the quick ratio?

    Find out how the quick ratio and the current ratio can offer different views on a company's ability to pay off liabilities.
  11. Why is earnings per share (EPS) also known as “The Bottom Line”?

    "The bottom line" is a cliche is many aspects, but in finance the expression usually refers to a specific financial calculation: ...
  12. Cost of Debt

    Cost of debt is the rate, expressed as a percentage, that a company pays on its borrowings.
  13. Solvency Ratio

    The Solvency Ratio is one of many ratios used to measure a company's ability to pay its debts. Generally, the higher the ...
  14. EBIT (Earnings Before Interest and Taxes)

    Earnings before interest and taxes, or EBIT, takes a company’s revenue, or earnings, and subtracts its cost of goods sold ...
  15. Fundamental Investment Metrics For Buying Stocks And Bonds

    Don't let the name fool you. Even a "fundamental" investor has to pay attention to certain metrics.
  16. For Individual Investors, These May Be The Best Of Times

    The raging debate on high frequency trading may lead the average retail investor to think that he/she continues to get a ...
  17. The Most Accurate Way To Gauge Returns: The Compound Annual Growth Rate

    The compound annual growth rate, or CAGR for short, represents one of the most accurate ways to calculate and determine returns ...
  18. Sinking Fund

    A sinking fund is a way for companies to pay off part of their bond issue before it reaches maturity. By eliminating its ...
  19. The 4 R's Of Investing In Retail

    In retail, successfully managing return on investment (ROI) and other financial indicators is the key to a healthy business. ...
  20. The Debt-Service Coverage Ratio (DSCR)

    The Debt-Service Coverage Ratio (DSCR) is a simple way to analyze whether a company can adequately manage its borrowing costs. ...
  21. The Operating Leverage And DOL

    Operating leverage tells investors about the relationship between a company's fixed and variable costs. The higher a company's ...
  22. Reading The Inventory Turnover

    Inventory turnover is a ratio that shows how quickly a company uses up its supply of goods over a given time frame. Inventory ...
  23. The Return On Invested Capital (ROIC)

    Return on Invested Capital, or ROIC, is a fundamental method of determining a company's financial performance. It is used ...
  24. Assess Shareholder Wealth With EPS

    Find out if management is doing its job of creating profit for investors.
  25. Dividend Ratios: Payout And Retention

    The dividend payout ratio and retention ratio measure how much profit a company gives back to shareholders as dividends. ...
  26. Financial Markets: Random, Cyclical Or Both?

    Are the markets random or cyclical? It depends on who you ask. Here, we go over both sides of the argument.
  27. Cash Flow Statement: Analyzing Cash Flow From Financing Activities

    The financing activity in the cash flow statement measures the flow of cash between a firm and its owners and creditors.
  28. Comparing The P/E, EPS And Earnings Yield

    P/E may be the established standard for valuation purposes, but the earnings yield is especially useful for comparing potential ...
  29. Cash Flow Statement: Analyzing Cash Flow From Investing Activities

    Reviewing investment activity is one of the most important exercises an individual can do to see how efficiently a company's ...
  30. The Optimal Use Of Financial Leverage In A Corporate Capital Structure

    The amount of debt and equity that makes up a company's capital structure has many risk and return implications.
  31. Can Investors Trust The P/E Ratio?

    The P/E ratio is one of the most popular stock market ratios, but it has some serious flaws that investors should know about. ...
  32. How To Trade The News

    Regardless of your investing horizon, learning to trade the news is an essential skill for astute portfolio management and ...
  33. Evaluate Stock Price With Reverse-Engineering DCF

    This is a more accurate method to use when trying to find a target price for a stock.
  34. Analyzing Blue-Chip Stocks

    To find a good value on a blue-chip stocks, look for companies with strong fundamentals, appropriate levels of debt and competitive ...
  35. The Gross Margin

    A business's "gross margin" is a rough gauge of how profitable its operations are. It measures how much sales revenue the ...
  36. Cash Flow Statement: Reviewing The Cash Flow From Operations

    A company's ability to consistently generate positive cash flows from its daily business operations is highly valued by investors. ...
  37. Technical Vs. Fundamental Investing - Friends Or Foes?

    Making money in the stock market has been likened to gambling by some, but experienced investors who do their homework usually ...
  38. Reviewing Assets On The Balance Sheet

    A firm uses its assets to generate sales and bottom-line profits for shareholders. A healthy company will continually grow ...
  39. Introduction to Stock Trader Types

    Being a stock trader can be both profitable and gratifying. To maximize the financial benefits and your own enjoyment, you ...
  40. Introduction To Fundamentally Weighted Index Investing

    If you believe the market smiles on those who focus on value, growth or income, this vehicle may be for you.
  41. How To Analyze The Transportation Industry

    By gaining an awareness of the transportation firms and trends that affect these players, investors can gain an edge by analyzing ...
  42. An Introduction To Coverage Ratios

    Interest coverage ratios help determine a company's ability to pay down its debt.
  43. Investing In Healthcare Facilities

    Read on to learn about how to value heathcare sector stocks.
  44. Analyzing An Acquisition Announcement

    These deals can make or break investors' returns. Find out how to tell the difference.
  45. Yield Investing: Dividend, Earnings And FCF

    There are numerous ways to value investments, and many investors prefer a specific valuation method. Yield investing is one ...
  46. How To Value An Insurance Company

    In the insurance space, accurate predictions of metrics such as ROE are important, and paying a low P/B can help put the ...
  47. Introduction To STRIPS

    STRIPS provide an alternative form of bond for fixed-income investors who need definite cash flows at specific times. Read ...
  48. Equity Valuation: The Comparables Approach

    The main purpose of equity valuation is to estimate a value for a firm or security. There are three primary equity valuation ...
  49. Understanding Leverage Ratios

    Large amounts of debt can cause businesses to become less competitive and, in some cases, lead to default. To lower their ...
  50. Understanding Profit Metrics: Gross, Operating and Net Profits

    Rather than relying solely on net profit figures to evaluate a company's performance, seasoned investors will often look ...
Save Money
  1. 5 Ways To Make Your Home Remodels Pay Off

    Here are five ways to make your home renovation worth the money and effort you put into it.
  2. Differences Between Private Foundations And Public Charities

    Here's a look at the differences between these types of charitable organizations.
  3. How To Monetize Your YouTube Channel

    YouTube's Partner Program helps users earn money through their channels. Find out how.
  4. The World's Most Valuable Private Companies

    In spite of the rewards going public can bring, some companies prefer to remain private, and they are very successful in this.
  5. Is Cyber Monday The New Black Friday?

    Cyber Monday is becoming more popular than Black Friday. Here's why.
Trading Center