What is the Shiller p/e or CAPE ratio?

The price/earnings ratio is probably the most widely used valuation ratio in investment, but it does have many flaws.

In this video, Ed Bowsher looks at how the Shiller p/e ratio (also known as the cyclically adjusted p/e or Cape ratio) gets around these problems, and when it can be most useful in determining value.

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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