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Fundamental Analysis

Operating Profit Margin

net profit margin

The Operating Profit Margin Ratio is another profitability ratio. It shows the proportion of revenues left after making the payment for the operations unrelated to the direct production of goods and services. Hence, it is also referred to as income from operations. It shows the margin left after paying the expenses related to the cost of overhead, manufacturing, selling and ... Read More »

Gross Profit Margin Ratio

net profit margin

The Gross Profit Margin Ratio is one of the profitability ratios which shows how efficiently the company has generated revenues from the sale of its goods and inventories. It measures the amount of profit generated after deducting the direct expenses related to the production of goods and services. So, what about the meaning of gross profit? Gross profit is basically ... Read More »

What Is Net Profit Margin Meant To You

net profit margin

Net profit margin is one of the profitability ratios. It measures a company’s ability to generate income relative to revenue, balance sheet assets and operating costs. A higher net profit margin shows more efficiency of the company at converting its revenue into actual profit. This ratio is a useful way of making comparisons between companies in the same industry, for ... Read More »

What Is PE Ratio Or Price Earnings Ratio

fundamental analysis

The PE Ratio or price earnings ratio or price to earnings ratio is the same. Value Investors like to use this valuation method to assess what the market is willing to pay for a stock based on its current earnings. A value investor can use this ratio plus other indicators to assess if a company’s stock price is overly priced ... Read More »

EPS | What Is Earnings Per Share

financial figures

EPS or Earnings per share is what value investors will always look into. Earnings per share is basically the portion of a company’s profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company’s profitability.   Why EPS Is Important? EPS Growth is an important measure of management performance because it shows how ... Read More »

What Is A Dividend

fundamental analysis

You may not know what is a dividend if you are totally new in stock investing. When you start value investing in the world of stocks and shares, one particular word will pop up again and again. This word is of course dividend. The dividend is the profit that the share of stock brings. When companies pay out dividends you ... Read More »

What Is Intrinsic Value Of Stock

fundamental analysis

Have a hard time to find what is intrinsic value of stock? In short, intrinsic value is the actual value of a company. It may or may not be the same as the current market value. It is also a measure of asset value which covers all the intangible and tangible aspects of the business as well. Find what is ... Read More »

What Is Value Investing

What is value investing

People often ask what is value investing. Many are curious how one of the world’s richest man, Warren Buffett can accumulate his wealth for many decades in a consistent manner. A simple answer to what is value investing is simply the strategy of acquiring stocks at a huge discount to their intrinsic value. Intrinsic value of stocks can be derived via ... Read More »