Markets Bounce Back, Intro to Valuation Ratios

Happy Monday, wealthy people! 

When I read the financial news, I often find myself thinking, what’s this stock’s valuation? How fast is this company growing? That’s because I’m a valuation-aware investor. I do buy expensive stocks (I have plenty of those) but I always want to put the valuation in the context of a company’s growth rate.

So for this reason, for each stock mentioned in this newsletter we will now include its three key metrics:

  • Price/ Earnings ratio (P/E), using Last Twelve Months Earnings

  • Price/ Sales ratio (P/S), using Last Twelve Months Sales

  • Revenue Growth for the Last Twelve Months

    (Fun fact: Sales = Revenue. They are two words to describe the same thing).

For a deeper look into what these metrics mean and how to translate them, read our article.

In today’s email:

👉 Stock Market Update 

👉 Fund Corner

Grab your latte and let’s get started!

Margarita T., CFA

Founder, Finance Latte

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