Understanding Revenue 💰

It consists of three main categories:

• Sales or revenue during a given time period. It includes sales (revenue) and Earnings-per-share (EPS)
• Costs and expenses: “Above the line” are the cost of goods sold (COGS), cost of services (COS). “Below t...

While using the P/E ratio as a building block is probably the most popular method to value stocks it is far from the only way. Another common technique to valuing stocks is the price/sales ratio. The P/S ratio is determined by dividing a company's market cap -- the total value of all the companie...

A common mistake companies make in their business model is that they often underestimate the costs of funding the business until it becomes profitable.

Many analysts believe that companies that run on the best business models can run themselves.

• One way analys...