FAQs tagged as

Equity Valuation

  1. Does investing in small cap stocks have advantages over investing in big cap stocks?

  2. What are the macroeconomic effects of allowing stock buying on margin?

  3. Why would you look at year-over-year rather than quarterly growth?

  4. Where on the internet can I look up price to sales ratios for specific companies?

  5. Why do shareholders need financial statements?

  6. What is the difference between a subsidiary and a wholly owned subsidiary?

  7. How exactly do I use the price to sales ratio to evaluate a stock?

  8. Why has the price to sales ratio become a more popular metric than it was in the ...

  9. What is considered a favorable price to sales ratio?

  10. What kinds of companies are the best candidates for evaluation using the Gordon Growth ...

  11. How should investors interpret a company's cash conversion cycle (CCC)?

  12. How do I calculate a price to sales ratio using Excel?

  13. How can I calculate the value of a stock as per the Gordon Grown Model, using Excel?

  14. What are the main benchmarks for tracking the performance of the metals and mining ...

  15. Why does operating profit exclude interest revenues and expenses?

  16. What other investment metrics are best used in conjunction with net margin?

  17. What are the main benchmarks that track the performance of the financial services ...

  18. How do you calculate a payout ratio using Excel?

  19. What is a typical price-to-book ratio in the financial services sector?

  20. What is a common strategy traders implement when using the Upside/Downside Ratio?

  21. Why is overhead cost allocation sometimes manipulated on an income statement?

  22. How is taxation treated for both the parent and subsidiary company during a spinoff?

  23. Who exactly needs to be paying attention to the time interest earned ratio of a company?

  24. What is the relationship between minority interest discount and fair market value?

  25. Is return on sales (ROS) the same as profit margin?

  26. What metrics can be used to evaluate companies in the financial services sector?

  27. Why do investors with minority interest receive a minority interest discount and ...

  28. How do I calculate free, discounted and operational cash flow in Excel?

  29. How is NAV used for oil, gas, and energy investments?

  30. If the intrinsic value of a stock is significantly lower than the market price, should ...

  31. What does it mean if a share's market value is significantly higher than its book ...

  32. What are the main factors that drive share prices in the railroads sector?

  33. What is the average profit margin for a company in the railroads sector?

  34. What is the average return on equity for a company in the railroads sector?

  35. What is the average price-to-book ratio in the railroads sector?

  36. How often should I be checking the NAV of my mutual fund shares?

  37. What is the difference between book value per common share and NAV (net asset value)?

  38. What are some examples of preferred stock, and why do companies issue it?

  39. What's the difference between an income statement and a balance sheet approach?

  40. Is NAV the best way to assess the value of an REIT?

  41. How do I use the bid-ask spread to evaluate whether I should buy a particular stock?

  42. What is the difference between a company's equity and its shareholders' equity?

  43. What is the difference between EBIT and EBT?

  44. How do I use the PEG (price to earnings growth) ratio to determine whether a stock ...

  45. What is arbitrage pricing theory?

  46. What are the best technical indicators to complement the Time Segmented Volume (TSV)?

  47. What is considered a good PEG (price to earnings growth) ratio?

  48. What metrics can be used to evaluate companies in the forest products sector?

  49. What are the components of shareholders' equity?

  50. Why is the Relative Vigor Index (RVI) important for traders and analysts?

  51. What are the best technical indicators to complement the Positive Volume Index (PVI)?

  52. Do you always have to consider intrinsic value when purchasing a stock? Why or why ...

  53. What is the difference between the yield of stock and the yield of a bond?

  54. What is the difference between an IPO and a seasoned issue?

  55. For which types of investments is the debt service coverage ratio (DSCR) the most ...

  56. Over what duration should I be examining a given stock's PEG (price to earnings growth) ...

  57. What is the average price-to-book ratio in the oil & gas drilling sector?

  58. Should I care about the book value per common share when dealing with a blue chip ...

  59. Why would you take DCF into account rather than simply projecting future revenues?

  60. What are the pros and cons of owning preferred stock instead of common stock?

  61. What is the difference between cash flow and revenue?

  62. What industries tend to use discounted cash flow (DCF), and why?

  63. What is the difference between ROCE and ROE?

  64. Does a high price to book ratio correspond to a high ROE?

  65. What is considered a good price to book ratio?

  66. What is the difference between a Sharpe ratio and a Traynor ratio?

  67. What is the difference between a Sharpe ratio and a Sortino ratio

  68. What is the difference between a sharpe ratio and an information ratio?

  69. Is book value a better metric for company worth than the PE ratio?

  70. What is a good Sharpe ratio?

  71. How do you use the price-to-book ratio to evaluate a company's value?

  72. What role does discounted cash flow (DCF) play in stock valuation?

  73. How do traders interpret a Downside Tusuki Gap pattern?

  74. What is the difference between enterprise value and equity value?

  75. How do I take qualitative factors into consideration when using fundamental analysis?

  76. How do I start using technical analysis?

  77. What is the McGinley Dynamic?

  78. What is the Coppock curve?

  79. Is technical analysis used only to analyze stocks?

  80. What is the difference between fast and slow stochastics in technical analysis?

  81. What is Fibonacci retracement, and where do the ratios that are used come from?

  82. What do the bracketed numbers following a technical indicator mean?

  83. Does a strong trend (ADX > = 40) cause an increase in volatility?

  84. What technical tools can I use to measure momentum?

  85. Is maximizing stock price the same thing as maximizing profit?

  86. What's the difference between "top-down" and "bottom-up" investing?

  87. What does it mean to use technical divergence in trading?

  88. Which of the following terms are associated with the purchase/redemption of open-end ...

  89. What is a split-adjusted share price?

  90. What is the difference between fundamental and technical analysis?

  91. What's the difference between old- and new-economy stocks?

  92. I keep hearing about the 50-day, 100-day and 200-day moving averages. What do they ...

  93. Where do I place my target when the price of a stock breaks out of a technical chart ...

  94. Can technical analysis be called a self-fulfilling prophecy?

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