What is OPM? How to use OPM to invest in the right business? Why OPM is the vital ratio to consider when investing in businesses with a similar product line?
Earnings Yield – A Double Edged Sword
Earnings yield is the ratio of the earnings per share or EPS divided by the current share price. It is inverse of the price to earnings ratio
What is PE Ratio & Why It Is An Important Factor in Valuing a Stock?
Understanding the PE ratio and how to calculate forward PE ratio. Why the growth outlook doesn’t help even the long-term investors make money from the market?
Debt and Debt to Equity Ratio – Why I Always Avoid Companies in Debt
Good management knows the impact of debt and so they will never take more than the business can pay off. Not so good management won’t focus on how much the business can pay back but will decide on how much debt they need.