Fundamental Analysis

What Strategies Do Companies Employ to Increase Market Share?

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What Are the Components of a Risk Premium?

The risk premium is the excess return above the risk-free rate that investors require as compensation for the higher uncertainty associated with ...

4 Leverage Ratios Used In Evaluating Energy Firms

Investors in the oil and gas industry should keep an eye on the <a aria-describedby="tt" href="https://equityplusbd.com/Financial ...

Fundamental Analysis for Traders

The use of the fundamental analysis approach in trading has long been an object of argument between its followers and those who question the method ...

Analysis Of Variances (ANOVA)

What Is an Analysis Of Variances (ANOVA)? Analysis of variances (ANOVA) is used in finance in several different ways, such as to forecast the ...

Which Is Better: A High or Low Equity Multiplier?

In general, investors look for companies with a low equity multiplier because this indicates the company is using more equity and less <a aria ...

A Biotech Sector Primer

Biotechnology is one the strangest, scariest, sexiest, and most interesting corners of the stock market. In how many other industries are companies ...

EBIT/EV Multiple

What Is the EBIT/EV Multiple? The EBIT/EV multiple, shorthand for earnings before interest and taxes (EBIT) divided by enterprise value (EV), is a ...

What Is Considered a Healthy EV/EBITDA ?

The enterprise value (EV) to the earnings before interest, taxes, depreciation, and <a aria-describedby="tt" href="https:/ ...

Cash Flow Per Share

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How Do I Read and Analyze an Income Statement?

The <a aria-describedby="tt" href="https://equityplusbd.com/Financial%20Terms/income-statement/" class="glossaryLink; ...

How Do I Read and Analyze an Income Statement?

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How To Read The Michigan Consumer Sentiment Index

Several major economic indices and indicators can help investors and economists predict where the economy is headed. The <a aria=& ...

Apple’s Key Weaknesses

Apple Inc. (AAPL) is among one of the largest tech companies in the world, as measured by market cap, and continues to dominate in the categories ...

What Is an Economic Moat?

What Is an Economic Moat? The term economic moat, popularized by Warren Buffett, refers to a <a aria-describedby="tt" href=&quot:// ...

Macro Environment Definition

What Is a Macro Environment? A macro environment is the condition that exists in the economy as a whole, rather than in a particular sector or. ...

Citron Says Ligand Has 80% Downside in Explosive Note

Citron Research, the activist short-seller headed by Andrew Left, has dug up some nasty evidence against Ligand Pharmaceuticals Inc. (LGND). In ...

When to Use Fundamental, Technical, and Quantitative Analysis

The most common methods that investors use to analyze the benefits and risks associated with long-term investments in the stock market include ...

What Is the Best Measure of Stock Price Volatility?

When selecting a <a aria-describedby="tt" href="https://equityplusbd.com/Financial%20Terms/security/" class=&quot& ...

Market Risk Premium

What Is Market Risk Premium? The market risk premium is the difference between the expected return on a market portfolio and the risk-free rate. The ...

Balance Sheet vs. Profit and Loss Statement: What’s the

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What Do Correlation Coefficients Positive, Negative, and Zero Mean?

<a aria-describedby="tt" href="https://equityplusbd.com/Financial%20Terms/correlation/" class="glossaryLink" data ...

Definition Dun & Bradstreet (D&B)

What Is Dun & Bradstreet (D&B)? Dun & Bradstreet is a <a aria-describedby="tt" href="https://equityplusbd.com% ...

SEC Form S-1 Definition

What is SEC Form S-1? SEC Form S-1 is the initial registration form for new securities required by the SEC for public companies that are based in ...

How Is a Company’s Stock Price and Market Capitalization

A company's worth—or its total market value—is called its market <a aria-describedby="tt" href="https:/ ...

7 Reasons Stocks May Be Drastically Overvalued

Although U.S. stocks have fallen sharply from their record highs, Goldman Sachs warns that "S&P 500 valuation is stretched relative to ...

How Should I Analyze a Company’s Financial Statements?

It behooves investors to take advantage of the wealth of information provided in a company's financial statements to help them evaluate the company ...

How to Analyze Corporate Profit Margins

Let's face it, a company's most important goal is to make money and keep it, which depends on liquidity and efficiency. Because these ...

Winsorized Mean Definition

What Is the Winsorized Mean? Winsorized mean is a method of averaging that initially replaces the smallest and largest values with the observations ...

Zeta Model Definition

What Is the Zeta Model? The Zeta Model is a mathematical model that estimates the chances of a public company going bankrupt within a two-year time ...

Residual Sum of Squares (RSS)

What Is the Residual Sum of Squares (RSS)? A residual sum of squares (RSS) is a statistical technique used to measure the amount of variance in a ...

How to Become Your Own Stock Analyst

Nobody asks you to become your own doctor or your own lawyer, so why should anybody <a aria-describedby="tt" href="https:/ ...

Weighted Average Shares vs. Shares Outstanding

Understanding the difference between weighted average shares and shares outstanding is vital for investors trying to build portfolios that will ...

How do you calculate the excess return of an

For exchange-traded funds (ETFs), the excess return should be equal to the risk-adjusted (or <a aria-describedby="tt" href=&quot:// ...

Average Selling Price (ASP)

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Can a Company Have Too Much Cash?

Cash is something companies love to have but, if you can believe it, there is such a thing as having too much. Many things contribute to a company ...

Top 3 Pitfalls Of Discounted Cash Flow Analysis

Most finance courses espouse the gospel of discounted <a aria-describedby="tt" href="https://equityplusbd.com/Financial%20Terms ...

What Does It Mean When a Company’s P/E Ratio

Investors have many different tools available to help them evaluate companies, their performance, and how viable they are as investment. ...

Valuing a Stock With Supernormal Dividend Growth Rates

One of the most important skills an investor can learn is how to value a stock. It can be a big challenge though, especially when it comes to stocks ...

How Is Operating Margin And EBITDA Different?

Operating <a aria-describedby="tt" href="https://equityplusbd.com/Financial%20Terms/margin/" class="glossaryLink" ...

Should You Pay More Attention to the EV/EBITDA or

The price-to-earnings (P/E) ratio is one of the most popular and widely used financial metrics, but it has a number of inherent flaws for which the ...

Consensus Estimate Definition

What Is a Consensus Estimate? A consensus estimate is a forecast of a public company's projected earnings based on the combined estimates of ...

Porter’s 5 Forces vs. SWOT Analysis: What’s the Difference?

Porter's 5 Forces vs. SWOT Analysis: An Overview Porter's 5 Forces and SWOT analysis are both tools used to analyze and make strategic decisions. ...

Biotech vs. Pharmaceuticals: What’s the Difference?

Biotechnology and pharmaceutical companies both produce medicines, but the medicines made by biotechnology companies are derived from living ...

Using EV/EBITDA and Price-to-Earnings (P/E) Ratios to Assess a

The EV/EBITDA multiple and the price-to-earnings (P/E) ratio are used together to provide a fuller, more complete analysis of a company's financial ...

Market Value Definition

What Is Market Value? Market value (also known as OMV, or "open market valuation") is the price an <a aria-describedby="tt" ...

Fundamentals Definition

What Are Fundamentals? Fundamentals include the basic qualitative and quantitative information that contributes to the financial or economic well ...

Price to Free Cash Flow

What is Price to Free <a aria-describedby="tt" href="https://equityplusbd.com/Financial%20Terms/cash-flow/" class=&quot ...

Strength, Weakness, Opportunity, and Threat (SWOT) Analysis

What Is SWOT Analysis? SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive ...

Metrics Definition

What Are Metrics? Metrics are measures of quantitative assessment commonly used for assessing, comparing, and tracking performance or production. ...

Porter’s 5 Forces

What Are Porter's Five Forces? Porter's Five Forces is a model that identifies and analyzes five competitive forces that shape every industry and ...

Net Worth Definition

What Is Net Worth? Net worth is the value of the assets a person or <a aria-describedby="tt" href="https://equityplusbd.com ...

Economic Moat Definition

What is an Economic Moat? Conceptualized and named by Warren Buffett, an economic moat is a distinct advantage a company has over its competitors ...

Cash Cow Definition

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Bottom-Line Growth vs. Top-Line Growth: What’s the Difference?

Bottom-Line Growth vs. Top-Line Growth: An Overview The top line and <a aria-describedby="tt" href="https://equityplusbd.com ...

Revenue vs. Profit: What’s the Difference?

Revenue vs. Profit: An Overview Revenue is the total amount of <a aria-describedby="tt" href="https://equityplusbd.com/Financial ...

Amortization vs. Depreciation: What’s the Difference?

<a aria-describedby="tt" href="https://equityplusbd.com/Financial%20Terms/amortization/" class="glossaryLink" data ...

10-K Definition

What Is a 10-K? A 10-K is a comprehensive report filed annually by a publicly-traded company about its financial performance and is required by the. ...

Terminal Value (TV)

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Price-to-Earnings Ratio – P/E Ratio

What Is Price-to-Earnings Ratio – P/E Ratio? The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its ...

Fama and French Three Factor Model

What Is the Fama and French Three Factor Model? The Fama and French Three-Factor Model (or the Fama French Model for short) is an <a aria ...

Book Value Per Common Share – BVPS Definition

What is <a aria-describedby="tt" href="https://equityplusbd.com/Financial%20Terms/book-value/" class="glossaryLink" ...

The Formula for Calculating EBITDA (With Examples)

There are a number of metrics available to measure profitability. EBITDA (earnings before interest, taxes, depreciation, and <a ...

Required Rate of Return – RRR

What Is Required Rate of Return – RRR? The required rate of return is the minimum return an investor will accept for owning a company's, ...