Historical EPS Data for the S&P 500 – 20 Years of Average YOY Growth

Comparing a company’s historical EPS (earnings per share) data with the S&P 500 helps give insight on a company’s growth. It can tell investors whether that company is keeping up with the market or economy. It can also tell investors if that company deserves its valuation. The reason to look at historical EPS growth to […]

Graham Formula: Taking a Look at the Way Benjamin Graham Values Stocks

“Using precise numbers is, in fact, foolish; working with a range of possibilities is a better approach.” Warren Buffett Warren Buffett shares much of his investing wisdom in his annual letters to shareholders, including his thoughts on calculating intrinsic value. His favorite analogy is the Aesop fable that a bird in the hand is worth […]

What is Tapering in Finance and the Taper Tantrum of 2013?

The word tapering is getting mentioned a lot in the news these days as central banks are starting to tighten monetary policy. What does it mean when a central bank discusses tapering and how might it affect markets? What was the Taper Tantrum of 2013 I keep hearing being mentioned? This article will take a […]

The Price to Sales (P/S) Ratio Formula Explained

Price to Sales (“P/S”) is one of the more common and simple relative valuation ratios used to generally compare how expensive or cheap a stock is compared to its peers. The price to sales ratio formula itself is simple, it is Price (Market Cap) divided by Sales (Revenue). The reason we use Market Capitalization for […]

Take Rate: Its Importance in the eCommerce and Fintech Industries

Today’s marketplaces and finance industries are changing at a rapid pace. The rise of eCommerce and Fintech disrupts how we buy and sell merchandise, car rides, banking, and groceries. With that rise comes new terms that help us determine how profitable these companies are, plus how to define their pricing power. The take rate has […]

What is Banking As A Service (BaaS)? Finally the Future of Banking?

One of the hottest scenes in the market today is fintech, with $266 billion in new investments in the first half of 2021 alone. The rise of fintech such as PayPal, Square, Affirm, Adyen, Stripe, and many others is driving many innovations in banking, leading to fantastic valuations and huge gains in the market. Banking […]

How Payment Processing Works: A Guide for Beginners

How many of you still carry cash, or how many of us still pay for anything with cash? If you are like me, not many of us. The use of credit cards, debit cards, and online payment processing has exploded over the last ten years. But do any of us understand how payment processing works? […]

How to Use Net Tangible Assets from a Company’s Balance Sheet

Net tangible assets can be a very useful metric for evaluating a company’s future profitability, especially in capital intensive industries. In this blog post, I’ll explain the basics behind net tangible assets and include a few easy and practical metrics for it. We’ll break it up into these simple parts [Click to Skip Ahead]: What […]

Beginner’s Guide: What is the P/B Ratio in the Stock Market?

The P/B, or Price to Book Value Ratio, compares a company’s book value with its price in the stock market. Book Value, also called Shareholders’ Equity, is simply a company’s assets minus their liabilities. Book value is not usually explicitly referred to in a company’s financial statements, but is commonly known as another term for […]