In this video, Ed Bowsher explains how to calculate a company’s profit margin, why it is the best way to evaluate profitability, and how you can use it when analysing a company.
In his latest video, Ed Bowsher looks at the current ratio, which can help you see whether a company has sufficient resources to pay its bills in the near future.
Ed Bowsher explains what ‘net gearing’ is, and considers whether ‘net debt’ is inherently bad for a company.
Ed Bowsher explains how the EV/Ebit ratio works, and why it’s better than the price/earnings ratio.
The price/earnings ratio is a quick and simple way to look at a company’s valuation. But it can be seriously misleading if you don’t use it properly. Ed Bowsher explains how it works and why it can mislead.
In this video, Ed Bowsher looks at how the Shiller p/e ratio works (also known as the cyclically adjusted p/e or Cape ratio), and when it can be most useful in determining value.
It’s always important to consider what kind of return a company is generating from its assets. One way to do this is to look at return on capital employed (ROCE). Ed Bowsher explains what ROCE is, how to calculate it, and why it’s useful.
In this video, Ed Bowsher explains how to calculate return on equity, and why it could be useful to you.
Many private investors don’t know what ‘enterprise value’ means. But it’s a really useful concept that can help you make better investment decisions. Here, Ed Bowsher explains all.
Every investor should have a basic grasp of the discounted cash flow (DCF) technique. Here, Tim Bennett introduces the concept, and explains how it can be applied to valuing a company.