Fundamental Analysis

The dividend yield is a crucial metric for investors looking to gauge the income potential of their investments. Often expressed as a percentage, it measures the annual dividend payments made by a company relative to its current stock price. Understanding dividend yield can help you identify income-generating opportunities in the stock market. What is Dividend …

Enterprise value (EV) is a financial metric that offers a comprehensive snapshot of a company’s total value. Unlike market capitalization which solely accounts for a company’s equity value, enterprise value factors in the firm’s entire capital structure such as its debt, cash, preferred equity, and minority interest. By doing so, EV provides investors, analysts, and …

Long-term investors often look at various valuation metrics when deciding whether to invest in a particular company. One helpful metric to evaluate is market capitalization or market cap. Market capitalization is a measure of the total value of a company’s outstanding shares of stock. It is calculated by multiplying the current market price of one …

EBITDA stands for earnings before interest, taxes, depreciation and amortization. It’s a financial metric commonly used to evaluate a company’s financial performance and its ability to generate cash flow. This post will cover EBITDA in detail, including what it tells you, when to use it to evaluate businesses, and its limitations.  What is EBITDA? EBITDA …

Free cash flow, or FCF, is the cash a company generates after it accounts for outflows required to maintain business operations and support capital expenditures. Many investors consider FCF a better measure of profitability than net income or earnings, as it excludes non-cash expenses and accounts for capital spending and changes in net working capital …

Earnings Per Share (EPS) is a financial ratio investors use to evaluate a company’s profitability. It represents the portion of a company’s net earnings allocated to each outstanding share of common stock. By examining EPS, you gain valuable insights into a company’s ability to generate and distribute profits to its shareholders. This article will cover …