20y Average Valuation Multiple by Industry [S&P 500]: P/E, P/FCF, P/S
There are many valuation multiples which investors use to compare stocks with their peers in an industry. This post displays the mostly commonly used valuation multiples, showing average multiples of the S&P 500 by both sector and industry for Fiscal Year 2021 and 2020, as well as the 19 or 20-year historical averages (2002 – […]
The Basics Behind Using the Price to Earnings Valuation Method on a Stock
The price to earnings valuation method is a simple and quick way to get an idea about how cheap or expensive a stock generally is. Like any tool or framework, the price to earnings (or P/E) ratio is not a perfect estimate of valuation and has its drawbacks. The P/E is useful as a starting […]
The History of American Express and their Business Model
American Express’s history helped shape the structure of finance, along with its unique business model. Warren Buffett thinks so highly of American Express that he owns almost 20 percent of the company and remains the largest overall shareholder. During the salad oil scandal, Buffett began his journey with American Express in 1964. And it was […]
What’s the Ideal Quick Ratio? The 3 Simple Questions to Consider
The quick ratio is a worst-case scenario metric. It helps you project if a company could survive if revenues were to dry up. The quick ratio compares the short term assets and liabilities of a company. In general, an ideal quick ratio is one above 1. But that doesn’t tell the entire story, because for […]
What to Know Before Investing in Solar Energy
Solar power, wind, and hydro are the leaders among energy investments globally, with over $175.8 billion in solar. But what do we know about solar power and the grid needed to generate, transport, and deliver us – the consumer – power? And how can we find great investments taking advantage of this growing resource? According […]
What’s a Good Debt to Equity Ratio? The Ultimate Guide for Beginners
The debt to equity ratio is a great formula for investors to use as a rule of thumb for determining the riskiness of a stock, based on its balance sheet. That said, not all companies with a high debt to equity ratio are risky companies; not all companies with a low (or zero) debt to […]
Everything a Beginner to Semiconductor Equipment Companies Wants to Know
Technology hardware today is largely driven by semiconductors. And it is the semiconductor equipment companies who support the manufacturing of semiconductors through systems that test and verify the final product. It is important to note that today, semiconductor manufacturers and semiconductor equipment providers are two different industries. There are specialized companies that do one or […]
Stock Market Days Up vs. Down Percentage [Updated 2021]
So I was doing some research on the S&P 500 and came across some interesting data. Basically, I wanted to know what the stock market does on average. I particularly wanted to know the percentage of how many days the stock market is up vs down. Getting my data was actually simpler than you might […]
The Meaning of a Cyclical Industry Explained for Beginners
The economy moves in cycles. Good times and bad. Because of this, the stock market also tends to move in cycles. A cyclical industry is simply one where profits move up and down along with the economy. Examples of cyclical industries include ones which depend on consumer spending or business investment. They include, to name […]
A Guide to the Top Custodian Banks: What They Do and How They Work
“Banking is a very good business if you don’t do anything dumb.” Warren Buffett Banking is a fascinating sector; not only does it provide the lifeblood of capitalism credit, but its history intertwines with humankind. Think about it, railroads, automobiles, telephones, airplanes, and all tech came after banks, with many of the US’s biggest banks […]
