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Articles belonging to ‘Interpreting’

Using Multiples to Gauge Value

August 2013
One of the goals of stock analysis is to determine whether a company’s stock is “cheap” or “rich,” given its current stock price and financial situation. Popular methods of stock valuation include the use of a variety of ratios or multiples that compare a stock’s current price per share to an element of a firm’s financial statements—such as earnings, sales, book value, cash flow, or dividends. Read more »

Trend Analysis and Comparing Companies, Part 2

July 2013
The standard method for reporting the financial performance of companies is on a total dollar basis. Looking at this raw data, however, it is sometimes difficult to discern trends in a company’s performance or to compare companies—especially those that differ significantly in size (sales). Read more »

Trend Analysis and Comparing Companies

June 2013
The standard method for reporting the financial performance of companies is on a total dollar basis. Read more »

Measuring Performance With Relative Strength

January 2013
There are several ways to measure the performance of a stock, typically on either an absolute or a relative basis. Price change over a specified time period is an example of absolute performance, while relative performance communicates how well a stock has performed compared to some benchmark, usually a market or industry index. In this issue of Stock Investor News, we dis-cuss a relative performance measure, the relative strength index. Read more »

Estimating a Stock’s Fair Value Using Valuations

April 2012
Common sense dictates that investors should buy stocks when they are cheap and sell when they are rich. However, while this may be a simple principle, determining a company’s fair market price or intrinsic value is far from easy. Stock Investor Pro includes a tab on the Stock Notebook devoted to valuations to help users gauge the market’s assumptions that are built into a company’s stock price. Read more »

Measuring Performance With Relative Strength

May 2007
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Generate Reports to Organize Your Data

May 2004
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Would the Real EPS Figure Please Stand Up?

August 2003
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Estimating a Stock's Fair Value Using Valuations

August 2002
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"Using Multiples to Gauge Value, Stock Investor Price Multiples"

February 2002
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AAII Answers Common User Questions

August 2001
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Expanding Earnings Estimates Data

February 2001
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