The document provides an overview of evaluating companies using financial metrics and ratios. It discusses key metrics for analyzing income statements, including revenue growth, operating income growth, EPS growth, margins, and comparisons of metrics between companies. It also covers balance sheet metrics like the current ratio, return on equity, return on assets, and debt-to-equity ratio. The document concludes by discussing common valuation metrics like price-to-earnings ratios and how they can be used to evaluate if a stock is cheap or expensive relative to its peers and growth prospects.
Ask yourself a question, “Why do you invest?” “ What is it you truly want to win?” Winning should be reaching your goals, having the financial capacity to achieve your life goals … … not anyone else’s. Remember, you want to build a financial house that won’t fall down in a strong wind. To do that, you need to start with a plan -- a blueprint. And one of the best plans around is asset allocation.
Ask yourself a question, “Why do you invest?” “ What is it you truly want to win?” Winning should be reaching your goals, having the financial capacity to achieve your life goals … … not anyone else’s. Remember, you want to build a financial house that won’t fall down in a strong wind. To do that, you need to start with a plan -- a blueprint. And one of the best plans around is asset allocation.
Ask yourself a question, “Why do you invest?” “ What is it you truly want to win?” Winning should be reaching your goals, having the financial capacity to achieve your life goals … … not anyone else’s. Remember, you want to build a financial house that won’t fall down in a strong wind. To do that, you need to start with a plan -- a blueprint. And one of the best plans around is asset allocation.
Earnings = Net Income - At the end of 2002, the S&P 500’s PE reached a high of 32-33 but has been slowly and steadily declining since then to its current level of around 17