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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

Dividend Payout Ratio: How to Calculate Dividend Safety for Stocks
What is the Dividend Payout Ratio? The dividend payout ratio is a financial metric that shows how much of a company’s earnings are distributed to shareholders as dividends. This ratio is particularly important for dividend investors because it helps to show whether the company can continue to pay and grow its divide

Why ASML Stock Could Be a Hidden Gem for Long-Term Investors
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

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

Ex-Dividend Date & Other 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

How to Analyze a Stock’s Cash Flow Statement in Under 5 Minutes
The cash flow statement is one of the primary financial statements that provides a detailed breakdown of how cash is generated and used by a company over a period of time. The cash flow statement is often regarded as the most important financial statement for understanding a business’s true profitability because it

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 S

How to Analyze a Stock’s Income Statement in Under 5 Minutes
What is an Income Statement? The income statement, also known as the profit and loss statement, provides insights into a company’s operational performance and profitability over a quarterly or annual period and summarizes a company’s revenue, expenses, and profits or losses. 3 Key Parts of an Income Statement The in

What Are Analyst Estimates & Are They Accurate?
Analyst estimates are predictions or forecasts about a company’s future financial performance that are created by equity research analysts who follow that business or industry. Analyst estimates often take the form of quarterly, annual, or multi-year forecasts for a company’s revenue, earnings per share (EPS), opera

What Drives EPS Growth? | Key Stock Return Driver
What is EPS? Earnings Per Share (EPS) represents a company’s net earnings divided by its total number of shares outstanding. EPS is a great gauge of a company’s profitability for each share. Over the long term, EPS growth drives a stock’s price appreciation and makes a stock’s price rise over time. The Three Pillars

Revenue Growth: Why it’s Important and Key Drivers
What is Revenue Growth, and Why Does It Matter? Revenue growth is an increase in a company’s sales, and is one of the key drivers of a company’s shareholder returns over time. It helps to indicate demand for a company’s products or services, reflects competitive positioning, and signals the potential for sustainable
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