Tag: investing
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What is the Price-to-Gross Profit Ratio?
What is the Price-to-Gross Profit Ratio? The Price-to-Gross Profit (P/GP) Ratio is a valuation metric that compares a company’s market capitalization or stock price to its gross profit. It offers a more nuanced view than the Price-to-Sales (P/S) ratio because it considers the cost of goods sold (COGS), giving insight into a company’s production efficiency…
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What is the Price-to-Sales (P/S) Ratio?
The Price-to-Sales (P/S) Ratio is a valuation metric that compares a company’s stock price to its revenue. It indicates how much investors are willing to pay for each dollar of a company’s sales. It is primarily used to value companies that don’t have earnings (e.g., growth stocks) or are temporarily experiencing losses. Formula: Price-to-Sales Ratio…
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The Accounting and Finance Principles of Investing
Investing can be a powerful tool for building wealth, but it requires a solid understanding of key accounting and finance principles. This section will explore the fundamental concepts that underpin successful investment strategies, equipping you with the knowledge to make informed decisions and navigate the complex world of financial markets. What is investing? Understanding the…