In this webinar, CEO David Trainer, a Wall Street veteran, will discuss strategies that worked in the last market crash and the one thing that always matters when everything else breaks down.
Beyond the absurdity of basing investment decisions on a temporary weather event, these recommendations can be harmful to investors because they involve some stocks with very shaky fundamentals at a time when market volatility makes investing in strong businesses all the more important.
Why do investors, executives, and the financial media focus on reported earnings and other metrics such as EBITDA that ignore the balance sheet? Why aren’t executives around the world adopting ROIC in order to boost returns?
Investors looking for value need to take a holistic approach that measures a company’s ability to deliver economic earnings to investors and quantifies the expectations for future cash flows embedded in its current stock price.
With the significant drop in the market to start 2016, we can be sure that many investors are looking to shift their portfolios towards higher quality stocks. The challenge is how to define “high-quality” because it is not as straightforward as one might think.
While trading fads come and go, good fundamental research is required to fulfill your fiduciary duties to your clients and yourself. Without it, realize it or not, you take significant risk that the numbers you use to make a decision are not correct.
In our recent article on the flaws in return on equity, we showed how it has no correlation with several different measures of valuation. However, there is one valuation metric, price-to-book (“P/B”), that, at first, appears to correlate strongly with ROE. A more rigorous look reveals the relationship between the two variables is not as…
Recently, we ran through the various flaws in the price to earnings ratio and explained why investors need to be paying more attention to return on invested capital (ROIC). This week, we’re tackling another of the market’s favorite metrics, return on equity (ROE). Return on equity has a very simple formula: It’s tempting to think…
We’ve pointed out the flaws in the price to earnings (PE) ratio many times before. Chief among these flaws is the fact that the accounting earnings used in the ratio are unreliable for many reasons:
In this special webinar, CEO David Trainer will walk you through how to determine whether or not a corporate acquisition is in your — the investor’s — best interests.
Investing vs. Speculating — and why Wall Street doesn’t want you to know the difference.
In this video, David Trainer shows you the capability and flexibility of our valuation models by looking at the growth expectations embedded in Netflix’s (NFLX) current stock price.
Watch David Trainer explain the importance of understanding how much capital has truly gone into a business, and the adjustments we make to calculate this metric.
Net operating profit after-tax, or NOPAT, is the profit metric we use at the base of our company models. CEO David Trainer explains why we rely on NOPAT.
Watch as CEO David Trainer explains why return on invested capital is one of the most important metrics for picking good companies.
Detail on the New Constructs research featured in USA Today’s best stock picks of 2015.
Find out how over 75% of companies are hiding billions of dollars of off-balance sheet debt from their investors.
For investors who watched the market collapse into year-end 2008 and were looking for buying opportunities, finding the best value was imperative. Stock prices had sunk to levels previously unseen, and if you could locate companies that were not only cheap, but also had high quality earnings, the payoff could be enormous.
How is Corporate Competition Affecting Your Portfolio? Investing is hard enough, but adding corporate competition to the mix only inserts another dimension of difficulty. How do you know whether the company you’re investing in is going to continue to perform? And how do you know the company you’re investing in is going to maintain its…
With Investing 101, we’re going to show you how to use price-to-economic book value to measure market expectations. You’ll learn about the value of PEBV.
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