The bottom line, I told the attendees, was that these things all relate to the short term, and this is what I know about the short term: Most investors can’t do a superior job of predicting short-term phenomena like these. Thus, they shouldn’t put much stock in opinions on these ...
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable. However, an...
Value is future looking A simple definition for value is this: Current production + potential = value When doing a fundamental analysis of a company, you take into account not just what is happening today but also what the potential for earnings and growth are in the future. This is where ...
When it comes to the major U.S. stock indexes, the S&P 500 index is the most highly regarded as a barometer of the overall stock market's performance and an indicator of how large corporations are performing. With that in mind, here’s what all investors should know about the S&P 500 ...
Post-money Valuation: Pre-money valuation is the startup’s value before receiving external investment, while post-money valuation includes the investment amount. Post-money valuation is used to determine the ownership percentage investors receive. –Valuation Drivers: Factors such as revenue growth, ...
The snowball effect is a metaphor that describes any action or event as it evolves from something unimportant to something larger and more significant. The metaphor is named after the analogy of a snowball as it rolls down a hill covered in snow. The sn
the P/E ratio is just one indicator that needs to be used in context with other data points and fundamental research in order to make an intelligent investment decision. This is the same if we ask “what is a good ROE“, or “what is a good P/B”,or what is the bestentry point ...
For instance, imagine you bought your house ten years ago, and your mother-in-law wants to know what the house is worth today. This situation is tricky, because every house is different, even in a street of similar houses. Some will be in better repair, while others may reek of Siamese...
The discount rate is central to the formula. It accounts for the fact that, as long as interest rates are positive, a dollar today is worth more than a dollar in the future. Inflation erodes the value of money over time. Meanwhile, today’s dollar can be invested in a safe asset like...
The idea of "legal insider trading" is a bit of a misnomer. As Fagel, the former SEC regional director, told us, "There is no such thing as 'legal insider trading.' If one engages in insider trading (i.e., someone with a legal duty trading on material nonpublic information), it is...