We go through 20 must know balance sheet ratios.
Each one of these ratios should be in your arsenal for any fundamental analysis and interpretation.
Understand how topics like solvency ratios, Cash Conversion Cycle, and Debt-Equity ratios play a role in determining the health of a business.
Free download also available as a companion to the article.
A breakdown of changes in working capital. How Buffett defines it and how to use it for valuation. Includes a free spreadsheet download to complement the article.READ MORE
A guide to understand and interpret the financial statements. Discusses how Warren Buffett uses it to identify stocks and moats. Refer to the table at the end that summarizes the entire discussion.READ MORE
Get insights into how Buffett would analyze financial statements.
A stock portfolio tracker using Google Drive with advanced functions than your average tracker. Get it for yourself.
A project that I’ve always had, was to improve on my stock portfolio tracking spreadsheets.
During this time, I’ve probably used 10 or so different portfolio trackers, but nothing met my needs. I don’t do complicated transactions, but still, nothing could really satisfy me.
But those four long years have passed, and I believe I finally have a version that will serve my needs and fulfill its purpose for a long time.
Today is the day the dust on the topic of changes in working capital finally settles.
Read this page slowly, and download the worksheet to take with you because the whole topic of changes in working capital is very confusing. Spreadsheet includes examples, calculations and the full article.
It’s taken a lot of thought over many years to fully understand this idea of what the “change” in changes in working capital actually means and how it should be applied to valuation and financial analysis.
There’s only one reason why I continue to hold the majority of my portfolio in US stocks.
Reporting and transparency requirements by the SEC rocks.
Without it, calculating the below balance sheet ratios would be a nightmare.
The following list of ratios can be applied to both the public and private sector. At Old School Value, we apply these ratios to help discover undervalued stocks to invest in. It makes a big impact by helping you avoid falling knives and value traps.
Here we go.
Let’s get straight into the 20 balance sheet ratios to help you determine the financial health of a company.
Learn how to value stocks using a simple formula created by Ben Graham. A quick way to estimate the range of a stock for value investors using growth numbers. Download the companion Graham formula spreadsheet.
When it comes to doing a liquidity or solvency analysis, using the cash flow statement and cash flow ratios is a much better indicator than using the balance sheet or income statement ratios.
Gross margins are important but it doesn’t tell you whether a company can survive or not.
The PE isn’t much help too.
Unfortunately, cash flow statement analysis gets pushed down to the bottom of the to do pile, but not here. Read on.
This was originally published on 1/4 to our OSV VIP newsletter subscribers. Subscribe now to get this right away! … One of the books I enjoyed this year, Thinking In Bets, by Annie Duke, encourages being process-oriented in your decision-making and evaluation of those decisions. Yet most investors care only about their outcomes — their returns — and little else. “Resulters blame execution and bad decisions for why certain strategies don’t pan out. They fail to recognize that their evaluation is based on outcomes. The execution was good if the sales person made the sale; the decision to play the hand […]
I recently stumbled across an old discounted cash flow (DCF) model from mid-2006 that I built for Harley-Davidson (HOG, formerly HDI) […]
This was originally sent to our OSV VIP newsletter on December 18th. Sign up for our newsletter to get this in […]
The Piotroski F-Score has been the only positive screener that has consistently done well over time despite 2018 market conditions. […]
There’s an elephant in the room, so I’m just going to talk about it. The market has been pretty wild […]
What You’ll Learn
– Case study of a winning net net stock and why
– What does a company look like if it’s going through challenges
– When is it okay to favor an unfavored net net company?
What You’ll Learn
– How to easily sort good or bad stocks using the OSV app
– How to double check the data
Download 3 free stock calculator spreadsheets following the methods we use for our DCF, Grahams Formula and DuPont Analysis.
Understand the value of a stock as well as a deeper dive into how ROE is calculated.
Download a PDF of an independent study performed to validate and evaluate the performance of our Action Score Stock Grading and Valuation tool. Statiscal data with easy to understand explanations on how to interpret the data. See how the stock grading system works and leverage the work to pick winning stocks.
See how you can leverage the Old School Value stock grading and valuation tool to achieve market beating returns to generate a bigger portfolio. We disclose the 2016 performance and disclose how to piggyback our proven scoring and ratings system.
Enjoy our various list of value focused, free pre-defined stock screens.
Based on the ideas of Graham, Buffett, Greenblatt and other strategies.
A recommended reading list for anyone interested in fundamental analysis and value investing.
Each book is categorized into difficult.
9 value investing blogs that we highly recommend.
Excellent quality with a focus on education.
If you are running low on ideas of want to jumpstart your idea brain, check out these sites.
We have collected the best sites that offer quality stock ideas without any sales or being pushy.
From books, to websites, to podcasts, newsletters and more, we list the 60 best investing resources related to value investing you would be crazy to miss.