Fundamentals
P/E, EPS, DCF, earnings reports, and financial ratios
18 articles in this category
P/E Ratio Explained: How to Value Stocks Using Price-to-Earnings
The P/E ratio is the most widely used valuation metric. Learn how to calculate, interpret, and compare price-to-earnings ratios across different stocks.
Current Ratio: Formula, Interpretation & What's a Good Number
The current ratio measures a company's ability to pay short-term debts. Learn the formula, what good and bad ratios look like, and how to use it.
Debt-to-Equity Ratio: Formula, Calculation & Analysis
The debt-to-equity ratio shows how much a company relies on debt. Learn to calculate it, interpret results, and compare across industries.
Return on Assets (ROA): Formula, Calculation & Examples
ROA measures how efficiently a company uses assets to generate profit. Learn the formula, what good ROA looks like, and how to compare across sectors.
Earnings Per Share (EPS): What It Means & How to Use It
EPS shows how much profit a company earns per share. Learn the formula, basic vs diluted EPS, and how earnings per share drives stock prices.
Discounted Cash Flow (DCF): How to Value a Stock
DCF analysis estimates a stock intrinsic value using future cash flows. Learn the step-by-step process of building a discounted cash flow model.
How to Trade Earnings Reports: Before, During & After
Earnings reports create the biggest single-day moves. Learn how to prepare for earnings, interpret results, and trade the reaction profitably.
Revenue vs Earnings vs Net Income: What Traders Watch
Revenue, earnings, and net income are different things. Learn what each means, how they relate, and which ones move stock prices the most.
Sharpe Ratio: Measuring Risk-Adjusted Returns
The Sharpe ratio measures return per unit of risk. Learn the formula, what good and bad ratios look like, and how to evaluate trading strategy performance.
CAGR Formula: How to Calculate Compound Annual Growth Rate
CAGR smooths out returns to show the annualized growth rate. Learn the formula, how to calculate it, and how to use it to compare investments.
Return on Equity (ROE): Formula, Meaning & What's Good
ROE measures how efficiently a company turns shareholder equity into profit. Learn the formula, what a good ROE looks like, and how to use it in analysis.
Gross Margin: Formula, Interpretation & Sector Benchmarks
Gross margin shows what percentage of revenue remains after cost of goods sold. Learn the formula, sector benchmarks, and how to use it for analysis.
Enterprise Value: Why It's Better Than Market Cap for Valuation
Enterprise value includes debt and cash to give a truer picture of a company's total value. Learn the formula, EV/EBITDA, and why analysts prefer it.
What Is EBITDA? How to Use It for Stock Analysis
EBITDA strips out non-operating costs to show core operating profitability. Learn the formula, how it is used in valuation, and its limitations.
Free Cash Flow (FCF): The Most Important Number in Finance
Free cash flow is the cash a company generates after capital expenditures. Learn why many analysts consider it the single most important financial metric.
Intrinsic Value: How to Calculate What a Stock Is Really Worth
Intrinsic value is what a stock is truly worth based on fundamentals. Learn multiple methods to calculate it and find undervalued opportunities.
How to Read a Balance Sheet: Assets, Liabilities & Equity
The balance sheet shows what a company owns and owes at a point in time. Learn to read assets, liabilities, and equity like a fundamental analyst.
How to Read an Income Statement: Revenue to Net Income
The income statement tells you how much a company earned and spent over a period. Learn to read it from revenue to net income like a pro.