Stock Investing Basics
When learning stock investing, two of the most common metrics you’ll see are ROA (Return on Assets) and ROE (Return on Equity). At first glance, they may seem similar, but once you factor in debt (leverage), the picture changes dramatically. Let’s break it down in simple terms. ✅ ROA vs. ROE: The Basics ROA (Return […]
📊 ROA vs. ROE – Why Leverage Makes the Difference Read More »
“Why isn’t this stock going up even though it has a low P/E and high ROE?”Often, the answer is weak financial stability. Strong profits mean little if a company cannot survive during tough times. That’s why investors should also check debt ratio and interest coverage ratio — two key indicators of financial health. 📊 What
When analyzing stocks, you’ll often hear about two key metrics: ROE (Return on Equity) and ROA (Return on Assets). They may sound similar, but when viewed together, they reveal the true picture of how efficiently a company is managed.Let’s break it down in simple terms. ✅ ROE vs ROA at a Glance Metric ROE (Return
📊 ROE vs ROA – Why You Should Always Look at Both Read More »
If you’ve ever heard phrases like:“Company A has a high ROA — they manage assets really well.”“Company B’s ROE looks good, but its ROA is low. Something feels off.” They’re talking about ROA (Return on Assets) — a key metric to measure how efficiently a company uses all of its resources. Let’s break it down
📊 What Is ROA? A Beginner’s Guide to Return on Assets Read More »
If you’ve studied stocks, you’ve probably come across metrics like P/E and P/B.Another equally important one is ROE. 👉 “A company with high ROE is efficient at making money.”👉 “Low ROE can mean weak profitability.” But what exactly is ROE, and why do investors care so much? Let’s break it down. ✅ what is roe?
📈 What Is ROE? A Beginner’s Guide to Return on Equity Read More »
If you’ve been learning about investing, you may have heard phrases like: “Company A’s P/B is only 0.7.”“If the P/B ratio is below 1, isn’t that undervalued?” The P/B ratio (Price-to-Book Ratio) is one of the core metrics used to measure whether a stock is expensive or cheap compared to the company’s actual assets. Let’s
📊 What Is the P/B Ratio? A Beginner’s Guide to Understanding Stock Valuation Read More »
When analyzing stocks, one key metric you’ll often hear about is BPS. “Company A has a BPS of $15.”“The stock trades way above its BPS. Isn’t that overvalued?” But what exactly does BPS mean, and why does it matter? Let’s break it down in simple terms. ✅ what is bps? BPS = Book Value Per
💰 What Is BPS? A Beginner’s Guide to Understanding Book Value Per Share Read More »
If you’ve ever overheard investors saying things like:“Company A has a P/E of 10.”“Low P/E means undervalued, right?” 👉 They’re talking about the P/E ratio — one of the most popular ways to figure out if a stock is expensive or cheap.Let’s break it down in simple terms. ✅ What Is the P/E Ratio? P/E
📊 What Is the P/E Ratio? A Beginner’s Guide to Understanding Stock Valuation Read More »
If you’ve started learning about investing, you’ve probably heard people say things like: “This company’s EPS is $3.”“EPS has been rising—looks like a good sign.” But what exactly is EPS, and why does it matter for investors?Let’s break it down in simple terms. ✅ EPS = Earnings Per Share EPS stands for Earnings Per Share.It
💡 What Is EPS in Stocks? – Don’t Just Look at the Number, Understand the Meaning Read More »
If you’re learning about investing, one question always comes up: “Should I use a top-down strategy or a bottom-up strategy?” Both are powerful approaches. The difference lies in their direction, mindset, and analysis style. Knowing which fits your personality is the key. 🧭 What Is Top-Down Investing? The process: Economy → Industry → Company ✔️
⚔️ Top-Down vs. Bottom-Up Investing – Which Strategy Fits You Best? Read More »