For investors wanting to do a quick and dirty check on whether a firm is cheap or expensive, multiples can be helpful. As part of his short series on valuing companies, Tim Bennett explains why and how to go about using them.
Following on from his “3 ways to value a company” video, Tim introduces the first method called the ‘net assets approach’. Along the way he explains how it works, how it helps investors, and also points out some of its pitfalls.
Valuing a company is more art than science. Tim Bennett explains why and introduces three ways potential predators and investors alike can get started.
The conventional price earnings (p/e) ratio is great for deciding how cheap a share is. But Tim Bennett is an even bigger fan of its variant, the cyclically adjusted p/e ratio. In this video, he explains why.
Return on capital employed is a key ratio that can reveal lots of useful information about a firm. In this short guide, Tim Bennett explains how it works, when it is most useful and when it can let you down.
The latest hot buzz phrase doing the rounds in fund management is ‘smart beta’. Tim Bennett explains what it is, and what it means for you.
The p/e ratio is one of our favourites. However, as Tim Bennett explains, it can sometimes let you down.
According to the famous ‘Fed model’, the US stockmarket is a buy. Here, Tim Bennett introduces the model and explains why you shouldn’t rely on it now.
Dividend stocks are a good bet with interest rates at rock bottom. But how do you find a bargain? Tim Bennett introduces one of investing’s simplest valuation techniques – the Gordon Growth Model.
Fund managers claim to have it. Performance fees are often based on it. But what is alpha, and does it really exist? Tim Bennett explains.