Why Do Analysts Rarely Give Sell Ratings?
I was asked this question by a neophyte investor yesterday. She had just opened a brokerage account and was beginning to read investment research reports…
Why I like Robinhood.com
There are a few things that every investor looks for when choosing a brokerage firm to execute a trade or transaction. Commission costs, account fee’s, customer…
Prices Beyond Reason
On its own, each P/E ratio is meaningless. The P/E points us to optimism or pessimism, which we must then find the reasons for. For example,…
The P/E Behaving Normally
Of course, to spice things up, a high P/E can also mean the opposite of trouble; it may just be the marker of a true growth…
The P/E as a Red Flag
In fact, this kind of red flag has appeared repeatedly over fashionable sectors, perhaps most notable in 1998/1999 over the Internet industry. The surprising thing is…
The Reason For Connecting Price to Earnings
Any share price is built on expectations of a company’s future performance. Some of these expectations will be based on fundamentals such as the company’s recent…
How To Calculate Price to Earnings Ratio (P/E)
The P/E ratio is simple to calculate and probably the most consistent red flag to excessive optimism and overinvestment. It also serves, regularly as a marker…
Understanding the Importance of the Price/Earnings (P/E) Ratio
People who own stock in a company (public or private) want to know one thing above all else: Which way is the share price headed? Without…
Assessing a Company’s Debt-to-Equity Ratio
If you have ever in your life read anything related in investing then you have heard the term Debt-to-Equity ratio. The debt-to-equity ratio measures how much…
What is? Net Profit Margin
The operating efficiency of a company can be expressed in terms of net profit margin. Net profit margin describes the company’s ability to earn a net…
Other Important Financial Ratios
1. Activity ratios: cash conversion cycle, payables turnover, receivables turnover. These ratios give you an idea of what kind of revenues are produced by the firm’s…
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