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
I am still very bullish on the company and the original thesis is still intact. GRVY is set to release the sequel to their blockbuster game after 7 long years of delays, redevelopment and more delays. GRVY has shot up 50% with increasing volume and it is a good time to review the probabilities of downside vs upside.
One of the questions I have frequently been asked lately is, “How do you analyze businesses?” I usually respond by noting that determining a company’s intrinsic value is a subjective operation. It is nearly impossible to determine a company’s precise value but it is not hard to determine its approximate value and that is the aim, to be approximately right and not precisely wrong.
What the reverse DCF attempts to do in order to improve from the reputation of its twin, is to eliminate the need to forecast. Instead of starting with a given year’s FCF, and then projecting towards an unknown, the purpose of the reverse discounted cash flow is to calculate what growth rate the market is applying to the current stock price.
Using DCF is such an integral part of valuation. Here’s how to use it properly.
DuPont Analysis comes in if ROE could be broken down into small pieces and further help you to understand how the company is actually profiting. A 25% ROE can make a company smell like roses until you look deeper.
A look back at my initial investment in Gravity (GRVY), where it is today and what happened inbetween.
YTD GRVY is up 624%, but let’s get into the bigger details of whether it’s sustainable and legit.
Valuation is just for dummies? Is investing all about hot tech stocks? Let me show you why valuation still matters and why it’s important to people like me. Here are two stocks that are making money in this market with good fundamental cash growth.
Google Finance is killing their portfolios feature, in the next week or so.
For a Google Finance Portfolio alternative, check out this post.
As the market continues to climb, it’s easy to look for new ways to invest and potentially get off course.
Despite how well you are doing, there’s always the temptation to look at what others are doing and kick yourself for the ones you’ve missed.
I mean, check out what Amazon and Microsoft has done.
Amazon is up 47% YTD and Bezos is the richest man in the world again.
Microsoft is up 44% this year.
“Wal-Mart will go to $100”.
“Wal-Mart is inexpensive and it is the inexpensive alternative to Amazon.”
I’ll share real reasons for why Wal-Mart (WMT) is inexpensive through a unique perspective experienced over the past 6 months.
So did anyone notice what the market did this week? I’m sure you did. Anyway, here are links that you can spend your time reading. Brain food for value investors.
Wesco Aircraft (WAIR) sparked my interest after ranking value attributes for a basket of over 3,000 companies. At first it was the large debt reduction since 2014. Then the aggressive and historical outsized insider buying over the past two months, mean reverting stock performance with a -44% 52-week price change near 52 week low.
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.