One of the things that I look when picking stocks is a company’s Return On Equity. The higher the number, the better. Although that’s the rule, a higher number doesn’t always equate to a better investment. This is because it is affected by profitability and financial leverage. Analyzing the ROE formula shows that if Net … Read more
There are many valuation models out there on how to predict a stock price in the future. One model I always use is the Equity Bond Theory. The other is the Historical Earnings Growth Model. Today, I’ll share another valuation tool that you can use in order to foresee a stock’s future growth earnings potential. … Read more
From my past posts, we learned how to value a company by reading financial statements and using Warren Buffet’s Equity Bond Theory model. If you are just new to this blog and are not familiar with the model or how to read financial statements, you may read it through here. Now, there are also easy ways … Read more