PE ratio compares a company’s stock price with its earnings per share and helps determine if the stock is fairly priced. But what is a good PE ratio?
If you're considering purchasing a company's stock, you'll find it helpful to check the price-to-earnings ratio so that you can tell whether the particular stock is valued appropriately on the market. The P/E ratio is determined by dividing the current market price of the stock by the e...
Italy, Ireland, Greece, and Spain) have faded, and since we have gotten past them, many people assume that policy makers learned how to manage them rather than view these cases as early warnings of bigger crises on the horizon. But
Dripping is an old-fashioned way to invest in stocks. Instead of investing through a broker (in “street name”), you invest through a transfer agent that enables direct investment in a company’s stock (in “shareholder name’). Learn more about street name vs. shareholder namehere. In t...
Whether the stock market is in a big bubble Greed And Fear Control When Investing One of my primary goals on Financial Samurai is to help readers build meaningful wealth in arisk-appropriate manner. You need to learn how to quantify risk tolerance before making the right amount of investments...
One of the quickest ways to check the valuation of a stock is to look at its price-to-earnings ratio (P/E), also known as the earnings multiple. This is probably the most common and efficient way to assess whether or not you are paying too much for a stock. This article will explai...
When a company doesn't have earnings, investors can compare its stock price to its sales to help determine value. Price-to-book (P/B) ratio Another helpful tool is the price-to-book, or P/B ratio, which compares a company's stock price to the value of its assets on the balance she...
We use an in-depth survey of institutional investors investing in Japan to reveal the homogeneity and heterogeneity of their views on corporate governance
is one leading principle. Fundamental metrics, such as the price-to-earnings (PE) ratio, for example, illustrate company earnings in relation to their price. A value investor may invest in a company with a low PE ratio because it provides one barometer for determining whether it is undervalued...
Thequick ratiomeasures a company's ability to meet its short-term obligations with its most liquid assets. It divides the value of the Cash and Cash Equivalents account, the Marketable Securities account, and the Accounts Receivable account by the value of the Current Liabilities account. Inventory...