A $20 stock can be expensive, while a $300 stock can be reasonably valued. The share price by itself tells you very little about whether a company is cheap or expensive. What matters is what investors are paying relative to the earnings, cash flow, assets, or future growth the business can produce. That is the […]
Open a stock screener and sort companies by ROE, and the highest number can immediately look like the best business. A company with a 30% Return on Equity seems more attractive than one with 15%, so it is easy to assume the higher number represents the stronger company. But two companies can report the same
Normally, a sharp rise in U.S. Treasury yields should make life harder for gold and Bitcoin. Treasuries pay interest. Gold does not, and Bitcoin does not provide a contractual yield. When investors can earn roughly 5% from long-term government bonds, non-yielding assets should theoretically become less attractive. Yet the Gold and Bitcoin Rally has challenged
A company reports rising revenue and healthy profits. At first glance, the business appears to be doing well. But the income statement leaves out another important question: How much cash is the company actually generating after it pays for the assets needed to operate and grow? That is why free cash flow matters. A profitable
When a company reports earnings, one number often receives nearly as much attention as revenue or net income: earnings per share, or EPS. For a beginner, EPS can look like just another accounting figure. It is more useful than that. EPS Explained properly means understanding how much of a company’s earnings are attributable to each
A company reports 30% sales growth. The headline looks impressive, and it is easy to assume the business is getting stronger. But what if its costs increased 45%? What if the company needed heavy discounts, more advertising, additional employees, or expensive infrastructure just to generate those extra sales? This is why understanding Revenue vs Profit
