Investment Research
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9 February 2012 at 10 : 49 AM
Calculating Enterprise Value to EBITDA Ratio (EV/EBITDA)
Perhaps you’ve seen the ratio of Enterprise Value to EBITDA and wondered why this investing metric is used instead of price to earnings to guage a company’s valuation? Or maybe you were just curious about what EV/EBITDA really means? Maybe, you just need help calculating the ratio? Either way, we will cover all three of [...]
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1 January 2012 at 19 : 24 PM
Running a Comparable Company Valuation Analysis
If you’re serious about doing your own stock investment research, then the number one tool at your disposal is a comparable company valuation analysis, also referred to as running “comps”. When I used to work as a stock analyst, I would update, print, email and distribute a list of comparable companies for the industry that [...]
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22 November 2011 at 18 : 51 PM
How to Calculate Enterprise Value to Sales (EV/S)
The Enterprise Value to Sales (EV/S) ratio measures the value of a company, relative to its sales. It is a useful ratio used to determine the valuation of a particular company that is more comprehensive than price to sales (P/S) because it takes into account the entire capital structure of the company, including both the [...]
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17 October 2011 at 09 : 17 AM
How to Calculate and Use Price to Sales Ratio (P/S) to Value a Stock
Another investment valuation ratio that is quite common is the price to sales ratio, or P/S. We’re not sure why this ratio is so popular given its limited usefulness in valuing a companies’ stock price. With that said, we’re going to give a tutorial on how to calculate price to sales and then cover what [...]
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29 August 2011 at 08 : 12 AM
How to Calculate Price Earnings to Growth Ratio (PEG)
One of our favorite investment ratios is the ratio called PEG, or price earnings to growth ratio. It’s especially useful because it compares the relative valuation (PE ratio) to the growth rate (G). This ratio can be used to compare the valuations on stocks that are growing at different rates. It puts them on a [...]
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10 July 2011 at 21 : 40 PM
Calculating Market Capitalization
Market capitalization, commonly referred to as market cap, is the value of all of a company’s equity. It is one of the most basic investing metrics and one of the easiest to compute. Here, we’ll cover how to computer market cap and then discuss why it is useful. How to computer market cap Quite simply, [...]
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2 July 2011 at 18 : 57 PM
Calculating Enterprise Value
Enterprise Value is a measurement of the total capitalization of a company. Whereas market capitalization is a measurement of the total value of stock for a company, enterprise value adds the value of cash and debt to arrive at the value of the entire company. Enterprise value is considered a more valuable metric when compairing [...]
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11 June 2011 at 20 : 49 PM
What is EBITDA?
Another important metric when doing your own investment research is EBITDA. EBITDA, pronounced ee bit da, is an abbreviation for earnings before interest, taxes, depreciation and amortization. EBITDA is a gauge of cash flow earnings from a company that adjusts for capitalization differences and acquisition charges. Here we’ll discuss how to calculate EBITDA and then discuss why it is [...]
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7 May 2011 at 20 : 07 PM
Learn To Do Your Own Investment Research
There’s no better way to stay on the right investing path than to do things yourself. That way you have control over your own finances. And not only will you learn a lot and be able to make your own investment decisions, but you’ll save thousands of dollars over the years in fees and advisory [...]
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29 April 2011 at 15 : 00 PM
How to Calculate Price to Earnings Ratio (PE)
Part of doing your own investing research is understanding how to calculate stock valuation ratios. More importantly, you should be able to understand what the ratios mean, why they’re important, and how to use them to compare with other companies. Here, we’ll cover the price to earnings ratio, commonly referred to as a PE, or PE [...]
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