EV/Ebit – boring title, sexy ratio

In my last video, I looked at the price/earnings ratio (PER), which is probably the best-known investment ratio.

However, the PER has several flaws – the biggest of which is it doesn’t take a company’s debt situation into account. The EV/ebit ratio does reflect a company’s debt, so in this video I explain how the EV/ebit ratio works.

• See also: Why the price/earnings ratio is flawed

Video tutorial - why profit margins matter

Why profit margins are really useful

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.

Video tutorial: why hedge funds can be good news

Why hedge funds can be good news

Hedge funds perform a valuable service by weeding out overvalued shares. In this video, Ed Bowsher explains some of the things they look for when they’re hunting for shares to short.

Video tutorial - what is the current ratio?

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.

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