IFB292: 5 Metrics Every Beginner Investor Should Know

An episode of the The Investing for Beginners Podcast - Your Path to Financial Freedom podcast, hosted by By Andrew Sather, Stephen Morris, and Evan Raidt | Stock Market Guide to Buying Stocks, titled "IFB292: 5 Metrics Every Beginner Investor Should Know" was published on July 10, 2023 and runs 39 minutes.

July 10, 2023 ·39m · The Investing for Beginners Podcast - Your Path to Financial Freedom

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Summary

Welcome to Investing for Beginners podcast! In today's episode, we will talk about the five financial ratios every investor, beginner or not, should know! There's a multitude of ratios out there and each has their own purpose but we believe that these five are the most important and should be in every investor's arsenal in valuing a business so listen on! Timestamps of the episode: -The most popular metric of them all: The price to earnings ratio (P/E) [02:00] -The limitations of using the p/e ratio and the justification it gets depending on each industries it belongs. [04:33] -Defining the price to free cash flow ratio (P/CF) and why it is a more superior ratio than P/E. [09:27] -How to calculate the p/e and p/cf ratios into earnings yield. [14:52] -Now into the efficiency ratios: Return on Equity (ROE) and Return on Invested Capital (ROIC) [15:45] -Why always looking in a longer timeframe helps visualize the impact of ratios in a business. [21:38] -Balance sheet ratio: Debt to equity (D/E) [24:40] -The importance of knowing the context behind the d/e numbers and how it differs across each industry average. [27:04] -What is an interest coverage ratio and what it tells you. [31:15] Note: Timestamps may differ and are approximate, depending on your podcast player. For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com Today's show is sponsored by: Rocket Money Stop throwing your money away. Cancel unwanted subscriptions – and manage your expenses the easy way – by going to RocketMoney.com/BEGINNERS. SUBSCRIBE TO THE SHOW Apple | Spotify | Google | Stitcher | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices

Episode Description

Welcome to Investing for Beginners podcast! In today's episode, we will talk about the five financial ratios every investor, beginner or not, should know! There's a multitude of ratios out there and each has their own purpose but we believe that these five are the most important and should be in every investor's arsenal in valuing a business so listen on! Timestamps of the episode: -The most popular metric of them all: The price to earnings ratio (P/E) [02:00] -The limitations of using the p/e ratio and the justification it gets depending on each industries it belongs. [04:33] -Defining the price to free cash flow ratio (P/CF) and why it is a more superior ratio than P/E. [09:27] -How to calculate the p/e and p/cf ratios into earnings yield. [14:52] -Now into the efficiency ratios: Return on Equity (ROE) and Return on Invested Capital (ROIC) [15:45] -Why always looking in a longer timeframe helps visualize the impact of ratios in a business. [21:38] -Balance sheet ratio: Debt to equity (D/E) [24:40] -The importance of knowing the context behind the d/e numbers and how it differs across each industry average. [27:04] -What is an interest coverage ratio and what it tells you. [31:15] Note: Timestamps may differ and are approximate, depending on your podcast player. For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com Today's show is sponsored by: Rocket Money Stop throwing your money away. Cancel unwanted subscriptions – and manage your expenses the easy way – by going to RocketMoney.com/BEGINNERS. SUBSCRIBE TO THE SHOW Apple | Spotify | Google | Stitcher | Tunein Learn more about your ad choices. Visit megaphone.fm/adchoices

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