Top 6 Metrics for Investing in REITs

Top 6 Metrics for Investing in REITs

Real estate has been one of the greatest asset classes for wealth creation in history, and investing in Real Estate Investment Trusts (REITs) can allow you to get all the benefits of investing in real estate without going through the hassles that come with direct property ownership. In addition, owning REITs is one of the …

Dividend Yield: Meaning, Formula, Example

Dividend Yield: Meaning, Formula, Example

The dividend yield is a crucial metric for investors looking to gauge the income potential of their investments. Often expressed as a percentage, it measures the annual dividend payments made by a company relative to its current stock price. Understanding dividend yield can help you identify income-generating opportunities in the stock market. What is Dividend …

Enterprise Value: Definition and Calculation

Enterprise Value: Definition and Calculation

Enterprise value (EV) is a financial metric that offers a comprehensive snapshot of a company’s total value. Unlike market capitalization which solely accounts for a company’s equity value, enterprise value factors in the firm’s entire capital structure such as its debt, cash, preferred equity, and minority interest. By doing so, EV provides investors, analysts, and …

EBITDA: Definition, Formula, How to Use It

EBITDA: Definition, Formula, How to Use It

EBITDA stands for earnings before interest, taxes, depreciation and amortization. It’s a financial metric commonly used to evaluate a company’s financial performance and its ability to generate cash flow. This post will cover EBITDA in detail, including what it tells you, when to use it to evaluate businesses, and its limitations.  What is EBITDA? EBITDA …

What Is a Stock Price Target?

What Is a Stock Price Target?

When it comes to evaluating stocks, price targets can be useful. A price target is the estimated future value of a stock’s price, typically based on projected earnings, historical earnings, and economic conditions. Wall Street equity research analysts typically provide stock price targets for the public companies that they cover. They also offer buy, sell, …

Earnings Per Share: Definition, Formula, and Why EPS Matters

Earnings Per Share: Definition, Formula, and Why EPS Matters

Earnings Per Share (EPS) is a financial ratio investors use to evaluate a company’s profitability. It represents the portion of a company’s net earnings allocated to each outstanding share of common stock. By examining EPS, you gain valuable insights into a company’s ability to generate and distribute profits to its shareholders. This article will cover …

What Is a Good Return on Invested Capital?

What Is a Good Return on Invested Capital?

Before investing in a company, investors want to be sure that their hard-earned money will generate returns. But figuring this out can be difficult. That’s why investors look at various metrics to evaluate a company’s financial performance. If you’re curious about how companies make the most out of their money and generate profits, then understanding …

What is a Good Return on Equity Ratio

What is a Good Return on Equity Ratio

Return on Equity (ROE) is a financial ratio that reflects a company’s profitability in relation to the equity invested by shareholders. It basically measures how effectively a company utilizes investors’ funds to generate profits.  The ratio is vital in assessing a company’s financial performance and comparing it to that of its industry peers. In this …

What Is a Good P/E Ratio?

What Is a Good P/E Ratio?

Financial analysts and investors look at various metrics before deciding whether a stock is a buy. One of the metrics is the price-to-earnings ratio (P/E ratio).  The P/E ratio tells you whether a company’s stock price is overvalued, fairly valued, or undervalued. It also gives insight into a stock’s value compared to its industry peers. …

What Makes Stocks Go Up and Down

What Makes Stocks Go Up and Down

From national and global events to individual company fundamentals, there are many variables that contribute to the dynamic nature of stock prices. Understanding what impacts the ups and downs of a stock in the short and long term can help investors make more informed decisions and better navigate stock trading. This article provides an overview …

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