The accounting value or "book value" of your company's assets – or even the company itself – probably differs from the market value, and the difference may be significant. The distinction between the ...
As Accounting Coach reports, book value can have two definitions in accounting. The first defines the liquidation value of a firm as in bankruptcy liquidation. Book value can also refer to the ...
In recent Danger Zone reports, I’ve highlighted how P/E ratios and return on equity (ROE) mislead investors. This week, I'm looking at another metric that leads would-be value investors astray. Price ...
Enterprise value (EV) is a measure of a company's total value--going beyond just equity. EV represents what it would cost to ...
Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...
Investors constantly seek to answer one fundamental question: Am I paying a fair price for this company? Answering this requires diving into a company’s financial reports and the market’s collective ...
The recent market turbulence caused by COVID-19 led to a rush for liquidity, dislocating the short end of the credit markets, particularly commercial paper and short duration structured securities. It ...
BABY-BOOMERS may recall, perhaps wistfully, how the golden-arched sign outside every McDonald’s restaurant would proclaim how many customers had been served by the chain. As they became adults, the ...
In recent Danger Zone reports, we’ve highlighted how P/E ratios and return on equity (ROE) mislead investors. This week, we’re looking at another metric that leads would-be value investors astray ...