Financial Education
Free guides explaining the fundamentals of stock investing and financial analysis.
What is PE Ratio
The PE ratio compares a stock's price to its earnings per share. Learn the formula, a worked example, how to use it, and its limitations.
What is EPS
Earnings per share (EPS) measures a company's profit per share of stock. Learn how it is calculated, the main types, and why it matters.
What is ROE
Return on equity (ROE) shows how efficiently a company turns shareholder equity into profit. Learn the formula, a worked example, and its limits.
What is ROIC
Return on invested capital (ROIC) measures how well a company turns all of its capital, debt and equity, into profit. Learn the formula.
What is EBITDA
EBITDA is earnings before interest, taxes, depreciation, and amortization. Learn the formula, a worked example, and its limitations.
What is Enterprise Value
Enterprise value (EV) is a company's total value to all capital providers. Learn how EV is calculated, why debt matters, and how to use it.
What is Free Cash Flow
Free cash flow is the cash a company generates after funding operations and growth. Learn the formula, a worked example, and why it matters.
What is DCF
Discounted cash flow (DCF) values a company by discounting its forecast cash flows. Learn the model, its formula and example, and the pitfalls.
What is Intrinsic Value
Intrinsic value is an asset's true worth based on expected future cash flow. Learn how it is estimated and how to compare it to the market price.
What is EV/EBITDA
EV/EBITDA is a valuation multiple that compares enterprise value with operating earnings. It accounts for a company's debt. Learn how to use it.
What is Gross Margin
Gross margin measures how much a company keeps from each dollar of revenue after direct costs. Learn the formula and how to analyze profitability.
What is Operating Margin
Operating margin measures profit a company earns from regular business after operating costs and before interest and tax. Learn the formula and drivers.
What is Book Value
Book value is the net worth a company records on its balance sheet. Learn how to calculate it and how to use book value per share.
What is the PEG Ratio
The PEG ratio divides the price-to-earnings multiple by expected earnings growth, showing how cheap a stock is per unit of growth. Learn the formula.
What is Dividend Yield
Dividend yield is the annual dividend a company pays expressed as a percentage of the share price. Learn the formula and how to interpret it.