The Seafarer Investor

17. Common Financial ratios in stocks


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Welcome to today's episode! I will be talking about the most common financial ratios you will see first when checking out a company's fundamentals. This is a must for every investor to understand as it gives you a better tool to view a business in good light.

Timestamps:

  • P/E ratio [01:11]

  • The market is not stupid. [04:05]

  • EPS or earnings per share [05:17]

  • Be careful on growing EPS. It's not always as it seems. [06:21]

  • D/E or the debt to equity ratio [07:08]

  • Price to sales ratio- an important ratio for tech companies and alike. [10:34]

  • P/B ratio. The tangible assets ratio. [13:07]

  • Financial ratios are just tools. [15:20]

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The Seafarer InvestorBy Seoshin