When we are looking at financials of a company, we need to look at them like an underwriter who is making sure that money will not be lost on a loan to the company. An underwriter is looking for risk. Risk that the company will not be able to repay. An underwriter knows their stuff.… Read More »
Please note that I do not own either GE or Walmart (WMT) stock. In this video, I go through my quick evaluation of both stocks using their financials. Most companies report financials about once per quarter so you have the chance that your information can be a little stale. Still, it is the best public… Read More »
The short answer is discounted present value of future earnings (profits). You can do that in two formulas within a spreadsheet… However, let’s understand it from a basic pretend stock. Acme Widgets earns $5 per share per year. They have earned $5 per share for the past 5 years and are expecting $5 per share… Read More »