Valuation Articles and Guides
TickerPosts guides and articles tagged valuation. Plain-English, calm, and written for everyday investors. 11 posts.
Why Index Weighting Can Change a CAPE Forecast
A recent working paper argues that aggregate CAPE may combine company valuations and market returns using mismatched weights. Here is the proposed Component CAPE idea and its limits.
· 1 min read
Why Interest Rates Are Only One Part of a High CAPE
Interest rates affect how investors value future cash flows, but growth expectations and risk matter too. Learn why CAPE needs economic context.
· 1 min read
Book Value per Share Explained for Stock Investors
Book value per share compares accounting equity with share count, but asset quality and industry context matter more than the raw number.
· 2 min read
Price-to-Sales Ratio: When P/S Helps and When It Misleads
The price-to-sales ratio values a company against revenue, which can help with early-stage or low-margin firms but ignores profitability.
· 2 min read
What Is Free Cash Flow Yield? A Plain-English Stock Valuation Guide
Free cash flow yield compares a company's cash generation with its market value, helping investors evaluate valuation beyond earnings headlines.
· 1 min read
What Is EV/EBITDA and When Should Investors Use It?
EV/EBITDA compares enterprise value with operating earnings before financing and tax effects, making it a common peer-valuation tool.
· 1 min read
What Is the PEG Ratio? How Growth Changes Stock Valuation
The PEG ratio compares a stock's price-to-earnings ratio with expected earnings growth, but forecasts and quality of growth matter.
· 1 min read
Discounted Cash Flow Explained: A Beginner's DCF Guide
A DCF estimates a company's value from future cash flows, but small changes in growth, margins, and discount rates can move the result sharply.
· 1 min read
What Is Enterprise Value?
Enterprise value estimates the value of a business by combining market cap with debt and cash. Learn why EV can be useful when comparing companies.
· 1 min read
What Is Return on Equity?
Return on equity compares profit with shareholders' equity. Learn why ROE can suggest efficiency, and why debt and buybacks can distort it.
· 1 min read
What Is a P/E Ratio?
The price-to-earnings ratio compares a stock price with the company's earnings per share. Learn what it can show, what it misses, and why context matters.
· 1 min read