April 15, 20160Comments

5 Ways Corporate Governance Affects Investors and Stock Valuations Webinar

In this webinar, David Trainer, a Wall Street veteran, will discuss corporate governance issues to be aware of, how they can affect an investors portfolio, and how they affect underlying stock prices.

by Kyle Guske II, Senior Investment Analyst, MBA

April 13, 20160Comments

The Power Of Expectations Investing

Sometimes, even the most well recognized experts make shockingly bad predictions. No one truly knows (legally) what the market is going to do next, and the risk involved in that uncertainty is what creates the potential for significant returns.

by Sam McBride

April 12, 20160Comments

Free Cash Flow (FCF): Explanation & Examples

There are many ways to calculate free cash flow. Most approaches are short cuts to our more comprehensive approach to the calculation. The formula for FCF can be seen in Figure 1. For more on FCF, see within.

by Kyle Guske II, Senior Investment Analyst, MBA

April 12, 20160Comments

Economic Earnings: Explanation & Examples

To derive economic earnings, 30+ adjustments must be made to accounting earnings. These adjustments remove items hidden in the footnotes and MD&A of annual filings and close loopholes within GAAP accounting.

by Kyle Guske II, Senior Investment Analyst, MBA

April 12, 20160Comments

Weighted Average Cost of Capital (WACC): Explanation & Examples

WACC plays a key role in our economic earnings calculation. It is hard to be 100% certain about the exact cost of a company’s capital. Our guiding principle when calculating WACC is that it is better to be vaguely right than precisely wrong.

by Kyle Guske II, Senior Investment Analyst, MBA

April 12, 20160Comments

Return On Invested Capital (ROIC): Explanation & Examples

The formula (see Figure 1) for calculating ROIC is easy. The hard part is finding all the data, especially from the footnotes and MD&A, required to get NOPAT and Invested Capital right. When we calculate ROIC, we make numerous adjustments to close accounting loopholes and ensure apples-to-apples comparability across thousands of companies.

by Kyle Guske II, Senior Investment Analyst, MBA

April 12, 20163Comments

Net Operating Profit After-Tax (NOPAT): Explanation & Examples

We calculate NOPAT in two ways, from an operating and financing perspective. See Figure 1. Figure 1 shows the basic calculations. On page 2, we share the complete calculations for specific companies.

by Kyle Guske II, Senior Investment Analyst, MBA

April 12, 20162Comments

Invested Capital: Explanation & Examples

We calculate invested capital in two mathematically equivalent ways: financing and operating approach. Figure 1 shows the basic calculations. On page 2, we share the complete calculations for specific companies.

by Kyle Guske II, Senior Investment Analyst, MBA

February 3, 20160Comments

How To Protect Your Portfolio As Well As Your Colleagues Webinar

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.

by Kyle Guske II, Senior Investment Analyst, MBA

January 14, 20160Comments

True Value Investing Still Works

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.

by Sam McBride

January 13, 20160Comments

How Much Quality Is In The “High Quality” ETF?

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.

by Sam McBride

January 6, 20160Comments

The Problem With Using Accounting Book Value

For the best financial analysis ratios, look no further. Harvard Business School and MIT Sloan empirically demonstrate the superiority of the data that drives our models and calculations. This paper

by Sam McBride

January 6, 20160Comments

4 Reasons ROE Is Not A Useful Metric For Investors

For the best financial analysis ratios, look no further. Harvard Business School and MIT Sloan empirically demonstrate the superiority of the data that drives our models and calculations. This paper

by Sam McBride

November 30, 20152Comments

Why PE Ratios Are Not A Good Measure Of Value

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:

by Sam McBride

October 9, 20150Comments

David Trainer On How To Get The Truth About Valuation

In this extended podcast, CEO David Trainer, will discuss the challenges of investing, break down the process on how to make money in the market, and go into detail about some recent examples such as General Motors (GM).

by Kyle Guske II, Senior Investment Analyst, MBA

April 23, 20150Comments

Why Our Education Section Could Change Your Investment Process

If you haven't noticed, we recently added an "Education" section to our website, accessible via the tab at the top of this and every page. In this tab, you'll find almost all of the metrics and theory behind our research

by Andre Rouillard

March 30, 20150Comments

Investing is Not Like March Madness

March Madness is like investing, however, investing is not like March Madness.

by David Trainer, Founder & CEO

March 20, 20150Comments

Important Items You’re Probably Leaving Out of Your Stock Valuations

Recently, we published a special report on the 10 companies with the biggest adjustments to their valuations across all of the adjustments we make to each company. In this podcast, CEO David Trainer will explain some of these adjustments using the companies that we talked about in our report.

by David Trainer, Founder & CEO

March 19, 20150Comments

Why We Make Our Adjustments to the Balance Sheet

In this podcast, CEO David Trainer will explain some of the adjustments we make to companies' balance sheets through the lens of our recent report detailing the 11 companies with the biggest individual adjustments to their balance sheets.

by David Trainer, Founder & CEO

March 18, 20150Comments

Why We Make Our Adjustments to Income Statements

In this podcast, CEO David Trainer will explain why we make the adjustments to the income statement for each company.

by Andre Rouillard

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