Whether in the form of cash, debt, or investments, capital is the life source of a business for both maintenance and growth. Some capital in the form of debt can benefit a company, especially when it...
Category: Ratios
When reading about value investing, it is common to see the PE ratio of a company commonly referred to as one of the metrics that value investors look at. In this article, we will explore: why are PE...
The price to earnings ratio (PE ratio) measures a company’s value in relation to how much money it generates in the form of earnings. When calculating whether the purchase of a company’s stock...
The price to earnings ratio (PE ratio) measures a company’s value in relation to how much money it generates in the form of earnings. When calculating whether purchasing a tech company’s stock...
After the price-to-earnings ratio, the price-to-book ratio (PB ratio) is probably the most used and well-known valuation metric. It is a quick way of providing the value investor with a snapshot of...
Valuation is the process of using financial information to determine what a company is worth. Financial ratios put that valuation into the context of a company’s share price, which is then used to...