The Price to Earnings (P/e) ratio. This is one of the most popular investor ratios, and it's calculated by simply taking the price of a stock P and dividing it by the Earnings Per Share (or …
Estimating the Risk of a Stock
Risk. The other side of the coin. Here's how we go about estimating the risk of a stock (and why it works). What is risk? Recall when we looked at the relationships between Price, Risk & Return …
The Capital Asset Pricing Model (CAPM)
The Capital Asset Pricing Model (CAPM; pronounced cap-M). Probably the most famous -- and controversial -- asset pricing model out there. Here's everything you need to know about it, including how to …
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How to Calculate Stock Returns Manually & on Excel®
Returns. Probably the most fundamental and focal concept within investment analysis & portfolio management. How to calculate stock returns then? Perhaps more importantly, why should you calculate …
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Investment Fundamentals: Price, Risk, & Return
Price, Risk, and Return. 3 concepts which form the very foundation of Investment Analysis & Portfolio Management. Mastering these 3 concepts will change the way you look at investments, …
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Stock Valuation – An Introductory Overview
Stock valuation can be as simple or as complicated as we like. But let's start with something you'll likely find intriguing. There's no such thing as a "correct" / "true" value. Despite what anyone …
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