Published: April 16, 2020, 5:15 p.m.
In volume 1 of our Investing 101 series, Lead Analysts Matt and Austin discuss some common terms and things they think about when valuing stocks.
\n
During this episode we discuss:
\n
\n - Why we don\u2019t value stocks by the price of the stock
\n \n - Why we don\u2019t look for stocks that are down a high percentage from their highs
\n \n - How to find and asses Price to Earnings (PE) Ratio (GAAP, Non-GAAP, Forward PE), When/Why you should use GAAP or Non-GAAP numbers
\n \n - Example of finding Walmart\u2019s PE ratio
\n \n - Price to Sales Ratio (PS) definition and example finding Walmart\u2019s PS ratio.
\n \n - Price to Book Ratio (PB)
\n \n - Discounted Cash Flow (DCF) and why Matt and I don\u2019t use them much in our investing process.
\n \n
\n
Definitions and examples in this episode
\n
\n - Market Cap
\n \n - Price to Earnings Ratio (PE) (GAAP, Non-GAAP, Forward PE), When/Why you should use GAAP or Non-GAAP numbers
\n \n - Price to Sales Ratio (PS)
\n \n - Price to Book Ratio (PB)
\n \n - Discounted Cash Flow (DCF)
\n \n - Gross Margin
\n \n - Operating Margin
\n \n - Dollar-Based Net Expansion Rate (DBNER)
\n \n
\n
Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year.
\n
Start your journey toward's financial independence: https://www.7investing.com/subscribe
\n
Stop by our website to level-up your investing education: https://www.7investing.com
\n
Follow us on Social Media
\n
\u25ba https://www.facebook.com/7investing/
\n
\u25ba https://twitter.com/7investing
\n
\u25ba https://instagram.com/7investing