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To get a better understanding of the PEG ratio, we should look at the underlying factors in evaluating price-to-earnings and growth. To do this, we will start by making some assumptions. These assumptions may not be entirely representative of real life, but they will help to provide a baseline for the analysis and give some […]
The Price Earnings to Growth ratio is often relegated to “rule of thumb” status and doesn’t get much press despite that fact that it combines two of a stock’s most important fundamental attributes - the price to earnings ratio and forecasted earnings growth.
One main issue with this metric is the fact that it is not […]
As you may be able to tell from the focus of my recent posts, I’ve been bitten by the value bug. After suffering a string of losses as a result of poor discipline and a several poor trading weeks, I came to the realization that I would feel much more comfortable investing in stocks with […]
Last we mentioned fundamental analysis, we discussed profitability ratios, a way to measure how well a company makes money. Today, we look at liquidity ratios as a way to use financial statements to glean information on how well a company can pay its short-term bills. The three most common of these ratios are the […]
Now that we’ve gone through the basics of lookings at financial statements and valuation, we can go back to ratio analysis which I attempted to write about in the first Fundamental Analysis series and failed badly at. We’ll take it a bit slower this time and try to be a bit more methodical. We’ve actually […]
Valuation. Isn’t that something that financial geniuses do? Isn’t valuation for super-cool i-bankers and big shot investors? Doesn’t it take time and expertise that the average Joe just can’t commit? No, no, and… no. Valuation is really any technique used to determine the price you should pay for something. In the realm of stocks or […]
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