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- Markets Bounce Back, Intro to Valuation Ratios
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 |