Tag: P/E
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What is technical analysis?
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Technical analysis is one method of analyzing potential investments to determine when to buy or sell them. It is based on the idea that supply and demand affect the price of a security and that changes in this can predict future movements. At a more precise level, technical analysis uses…
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What is overbuying in trading?
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The definition of overbought in trading means that the price of a certain security has risen faster compared to the underlying growth fundamentals of the security according to the investor’s opinion. Investors may use various key indicators to determine whether the security is overbought and make investment decisions accordingly. How…
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What is the price-to-earnings growth (PEG) ratio?
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Definition and Example of PEG Ratio The Price/Earnings to Growth (PEG) ratio is an enhanced version of the Price/Earnings (P/E) ratio. Both are common methods for comparing two stocks and measuring their relative valuation. How to Calculate the PEG Ratio To calculate the PEG ratio for a specific stock, you…
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How to Use Dividend Yield to Evaluate Stocks
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Introduction The Return on Equity (ROE) is one of the metrics that helps assess a company’s efficiency in using its assets to generate profits, and understanding this value can help you evaluate stocks. How to Calculate Return on Equity You can calculate Return on Equity by dividing net income by…
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The Top 10 and Worst 10 States Regarding Property Taxes
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Every state imposes some form of property tax. These taxes are usually related to real estate, but some states tax vehicles and other assets as well. Rates can range from very low in one state to very high in another, but other types of taxes can balance property tax rates…
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What is the price-to-earnings (P/E) ratio?
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Definition and Example of Price-to-Earnings Ratio (P/E) The price-to-earnings ratio (P/E) is a quick calculation used to evaluate how expensive or cheap a stock price is at any given time. The price-to-earnings ratio (P/E) is also used to compare stocks within the same industry to each other. However, it is…
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Are bonds safer than stocks?
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Many new investors (and even experienced investors) believe that investing in bonds is safer than investing in stocks. However, this is not necessarily true, and this broad generalization overlooks the risks associated with investing in bonds. Bonds vs. Stocks It may be helpful to refresh your memory about the difference…
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Withdrawal Rate Strategies for Managing Retirement Income
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You need retirement income, but how much money should you withdraw each year? You want to ensure that you don’t deplete your accounts too quickly. The answer is determined by calculating the safe withdrawal rate. Safe Withdrawal Rate The safe withdrawal rate is the estimated portion of money that you…
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Key Financial Ratios for New Investors
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Learning how to read and understand key financial ratios is an important step in stock investing. You need to know what they mean and what they can tell you, even if you get the ratio numbers from your broker or a website. You can make mistakes without this knowledge, such…
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ما هي القيمة الدفترية؟
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Definition of Book Value and Examples Book value is a term that describes the basic net value of a company. It is the total of its assets minus its liabilities. You can use it to assess the value of the company relative to its outstanding shares and stock price. It…