Video tutorials – ratios

Why profit margins are really useful

Video tutorial - why profit margins matter

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.

What is the 'current ratio'?

Video tutorial - what is the current ratio?

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.

What is net gearing?

Video tutorial: What is net gearing?

Ed Bowsher explains what ‘net gearing’ is, and considers whether ‘net debt’ is inherently bad for a company.

EV/Ebit - boring title, sexy ratio

Video tutorial - EV/Ebit ratio

Ed Bowsher explains how the EV/Ebit ratio works, and why it’s better than the price/earnings ratio.

Why the price/earnings ratio is flawed

Video tutorial: why the P/E ratio is flawed

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.

What is the Shiller p/e ratio?

Video tutorial: What is the Shiller p/e ratio?

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.

What is return on capital employed?

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.

What is return on equity?

In this video, Ed Bowsher explains how to calculate return on equity, and why it could be useful to you.

Why you should focus on enterprise value

Video tutorial: Why you should focus on enterprise value

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.

How to value a company using discounted cash flow

Video tutorial: How to value a company using discounted cash flow

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.

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