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Valuation and Investing
Life is full of people who will try to convince you that something is a good or bad idea by spouting technical jargon. Most of them have no idea what they are talking about. Don't be one of those people or their victims when it comes to stocks.
From P/E rations to EV/EBITDA, we've got your back!
Introduction to price and market capitalization
The income statement, revenue, gross profit, operating profit, net income, ROA and ROE.
Earnings, EPS (earnings per share) and how they relate to the income statement and balance sheet
Price to Earnings Ration (or P/E ratio).
Discussion of the price-to-earnings ratio
A discussion of the various ways to measure return on assets
More on the return on asset discussion.
Depreciation a capital asset
Introduction to amortization
A situation where the price to earnings ratio seems to not fairly price an asset
Solving the P/E conundrum by looking at a different valuation metric (enterprise value)
Review of Enterprise Value and comparing it to EBITDA