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.
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A short path from PE to DCF
Build intuition in order: price multiples, earnings per share, free cash flow, then intrinsic value.
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 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.
Browse by topic
Valuation (10)
Multiples and intrinsic value frameworks for pricing stocks.
Profitability (8)
Margins and return metrics that describe business quality.
Dividends & Equity (3)
Shareholder returns, book value, and equity metrics.
Risk & Leverage (4)
Balance-sheet risk, liquidity, and market sensitivity.
All guides
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 equals market cap plus debt minus cash. Learn the EV formula with a worked example, and when to use EV vs market cap in valuation.
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.
Dividend Yield Meaning
What dividend yield means, TTM vs forward yield, and when a high yield is a red flag. Free calculator: estimate annual and monthly income by ticker.
What is Price to Sales
The price-to-sales (P/S) ratio compares market cap to revenue. Learn the formula, when P/S beats P/E, and how to use it in stock screens.
What is Price to Book
Price-to-book (P/B) compares market price to accounting book value. Learn the formula, bank and cyclical use cases, and P/B pitfalls.
What is WACC
WACC is the blended required return on debt and equity. Learn the formula, how discount rates affect DCF value, and common mistakes.
What is Beta
Beta measures a stock's sensitivity to market moves. Learn how beta is calculated, how it feeds CAPM and WACC, and how to use it.
What is Debt to Equity
Debt-to-equity (D/E) compares total liabilities or interest-bearing debt to shareholders' equity. Learn the formula, leverage risk, and sector norms.
What is Current Ratio
The current ratio measures short-term liquidity: current assets divided by current liabilities. Learn the formula, healthy ranges, and limits.
What is ROA
Return on assets (ROA) shows how efficiently a company turns assets into net income. Learn the formula, ROA vs ROE, and how to use it.
What is Net Margin
Net profit margin is net income divided by revenue. Learn the formula, how it differs from gross and operating margin, and how to use it.
What is Revenue Growth
Revenue growth measures the pace of top-line expansion. Learn YoY and CAGR formulas, organic vs inorganic growth, and quality checks.
What is Earnings Yield
Earnings yield is EPS divided by price (the inverse of P/E). Learn the formula, how to compare stocks with rates, and key limitations.
What is Payout Ratio
The dividend payout ratio shows the share of earnings paid as dividends. Learn the formula, sustainable ranges, and FCF payout checks.
What is Working Capital
Working capital is current assets minus current liabilities. Learn the formula, cash conversion cycle, and how WC ties to free cash flow.
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