Stock Basics
Advantages & Disadvantages of Debt for Companies
Why do the big companies have debt? Are there disadvantages to being a debt-free company? Debt is Good or Bad for Companies? We often see
Shareholder Equity – Meaning, Basics, Examples, & Interpretation
A more common term for shareholder equity is Net Worth. It is visible on the company’s Balance Sheet. This number highlights an approximate liquidation value,
Price To Earnings Ratio [P/E] – Basics, Formula, Calculation, & Interpretation
P/E ratio in its basic form (trailing P/E) may not be as useful. But there can be multiple derivaties of it. P/E ratio seen through the lens of ‘earning yield’ or ‘PEG ratio’ gives good insights into price valuation. I personally love valuing high P/E stocks using the ‘forward P/E’ method.
Debt To Equity Ratio – Basics, Formula, Calculations, and Interpretation
The debt-Equity ratio (DE) is easy to calculate. But its interpretation is not as straightforward as we think. We generally assume that a DE ratio of 2 is acceptable. But for analysts, this number is too high. Let’s look at the DE ratio from an analyst’s perspective.
Bonus Shares and Stock Split: The Concept, Formula, and Examples
Bonus issue and stock splits make news for good companies. Long-term shareholders like this corporate action as it can increase the demand for their holding stock.
What is Value Investing? The Basics & Principles Explained For Beginners
With value investing comes a few synonymous terms like reading financial statements, intrinsic value, over and undervaluation, Benjamin Graham, Warren Buffett, long-term holding, etc.