What is a Good Operating Margin? | Definition & Formula

What is a Good Operating Margin? | Definition & Formula

When a company consistently sees stronger operating margins than its peers, it might indicate that the business has a competitive advantage and can outperform its peers and build wealth for its shareholders. In this guide, we’ll cover everything you need to know about operating margins, including how to calculate them, why they matter, what a …

Palantir Stock Trades at a Sky-High Valuation

Palantir Stock Trades at a Sky-High Valuation

Key Takeaways: What is the 2-Minute Valuation Model? There are 3 core factors that drive a stock’s long-term value: The 2-Minute Valuation Model uses a simple formula to value stocks: Expected Normalized EPS * Forward P/E ratio = Expected Share Price Revenue growth and margins drive a company’s long-term normalized EPS, and investors can use …

How to Analyze a Company’s Competitive Advantage

How to Analyze a Company’s Competitive Advantage

In the world of investing, few concepts are as powerful yet misunderstood as a company’s competitive advantage. In this guide, we’ll walk through what competitive advantages are, the types of “moats” companies can have, and the key financial and qualitative indicators to spot them. What is a Competitive Advantage? A competitive advantage is any unique …

What is the Buffett Indicator? | Definition and Formula

What is the Buffett Indicator? | Definition and Formula

What is the Buffett Indicator? The Buffett Indicator, named after legendary investor Warren Buffett, is a simple yet powerful tool that helps investors gauge whether the overall stock market is fairly valued, overvalued, or undervalued. Buffett himself has referred to this ratio as “probably the best single measure of where valuations stand at any given …

Is Apple Stock Overvalued Today?

Is Apple Stock Overvalued Today?

Key Takeaways: What is the 2-Minute Valuation Model? If you think about it, there are really only 3 things that drive a stock’s long-term valuation: The 2-Minute Valuation Model uses a simple formula to value stocks: Expected Normalized EPS * Forward P/E ratio = Expected Share Price Revenue growth and margins drive a company’s long-term …

Ex-Dividend Date & Other Important Dividend Dates

Ex-Dividend Date & Other Important Dividend Dates

What Are the Important Dividend Dates? When it comes to investing in dividend-paying stocks, it’s important to understand a stock’s key dividend dates because these dates determine your eligibility for receiving dividends on the dividend stocks you buy. The four most important dividend dates are the ex-dividend date, the declaration date, the record date, and …

How to Analyze a Stock’s Balance Sheet in Under 5 Minutes

How to Analyze a Stock’s Balance Sheet in Under 5 Minutes

What is the Balance Sheet? A balance sheet is a financial statement that provides a snapshot of a company’s financial position at a specific point in time. Understanding and analyzing a company’s balance sheet helps investors assess a company’s stability, growth potential, and overall financial health. The Balance Sheet’s Key Formula The balance sheet formula, …

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