20 Key Financial Ratios - InvestingAnswers
Apr 6, 2021 · Using the P/E ratio alone, the stock was considered overvalued, but by using the PEG ratio to account for EPS growth, the stock is actually undervalued. 13) Price-to-Sales (P/S) Ratio. The price-to-sales ratio is an important stock ratio that measures a company’s share price in relation to its sales per share. This is the price investors must ...
Discounted Cash Flow (DCF) Analysis - InvestingAnswers
Sep 29, 2020 · To determine a fair value estimate for a stock, first project the amount of operating cash flow the company is likely to produce in the years ahead. Most people estimate the cash flows for five or ten years in the future because it is nearly impossible to make a realistic estimate of cash flows for any lengthier amount of time.
Financial Statement Analysis for Beginners - InvestingAnswers
Financial statement analysis is the process of evaluating a company’s financial information in order to make informed economic decisions. It involves the review and analysis of income statements, balance sheets, cash flow statements, statements of shareholders’ equity, and any other relevant financial statements.
Trend Analysis Definition & Example - InvestingAnswers
Apr 27, 2021 · A trend analysis is a method of analysis that allows traders to predict what will happen with a stock in the future. Trend analysis is based on historical data about the stock's performance given the overall trends of the market and particular indicators within the market.
SWOT Analysis: A Practical Guide to Analyzing Companies
Jan 25, 2021 · SWOT Analysis. Some investors like to use a formal framework known as SWOT analysis. SWOT analysis involves analyzing a company's Strengths, Weaknesses, Opportunities and Threats. Factors internal to the company are usually classified as strengths and weaknesses, while external factors are classified as opportunities and threats.
Swing Trading Tips You Can’t Afford to Miss - InvestingAnswers
Apr 23, 2021 · When possible, incorporating “Price Relative” to the S&P 500 into your chart analysis should tell you how the individual stock is performing in relation to the overall market. During bear markets, seek out stocks whose relative strength line is trending downward in relation to the S&P. Do the opposite during bull markets. 3. Trade in Harmony
Multiple Definition & Example - InvestingAnswers
Oct 1, 2019 · Assume that Big Store's stock is trading at $14 and the company's earnings per share (EPS) is $2. Therefore, Big Store's price-to-earnings ratio (P/E) is $14/$2 = 7. This number -- '7' -- is known as a multiple. Here's how you could use it in your analysis: Assume the average P/E ratio for the companies in Big Store's industry is 10.
Principles of Technical Analysis: The Cup-and-Handle Pattern
Jan 26, 2021 · On a stock chart, the cup appears as 'U' shape. The handle appears as if it had the shape of a backslash symbol or '\'. The cup and handle is a bullish continuation pattern. It is marked by a consolidation, followed by a breakout. Once the pattern is complete, the stock should continue to trade upward, in the direction it was previously heading.
OBV -- On Balance Volume -- Definition & Example
Sep 29, 2020 · Designed in the early 1960s before computers were used in stock analysis, the OBV calculation is rather simple. An arbitrary number is used to begin an OBV line. On days when a stock's price closes higher, all the volume of that day is added to this line. On days when it closes lower, the volume is subtracted from the line.
Return on Investment (ROI) Calculator - InvestingAnswers
2 days ago · If you invest $10,000 in a company stock, or $50,000 in a piece of equipment for your business, ROI can help you determine if the investment will be worth making. For example, disclosures for an ETF may show an investment of $10,000 made 10 years ago has grown to $100,000 today; that may help you make a decision to invest in the fund, but ...