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Learn how to evaluate the legitimacy of target prices and why investors should trust these over ratings.
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The simple answer to this question is that absolute P/E, which is the most quoted of the two ratios, is the price of a stock divided by the company's earnings per share (EPS). This measure indicates ...
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Remember that the price/earnings to growth ratio (PEG ratio) is simply a given stock's price/earnings ratio (P/E ratio) divided by its percentage growth rate. The resulting number expresses how ...
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Learn what the price/earnings ratio really means and how you should use it to value companies.
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Appreciate the different methods used to describe how book value is "used up".
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When it comes to analyzing a company, successful analysts spend considerable time differentiating between accounting items that are likely to recur going forward from those that most likely will ...
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Running financial analysis on a company or industry is a key skill every investor must learn and understand how to undertake without which an ineffective financial report and investment recommendation ...
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Understand the specific steps that have been taken in hopes of converging the GAAP and the IFRS accounting standards, despite the philosophically and culturally based methodological differences ...
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The P/E ratio is a simple tool for evaluating a company, but no one ratio can tell the whole story.
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The P/B ratio can be an easy way to determine a company's value, but it isn't magic!