Tim, you have a rare skill of being able to demystify complex concept in terms that anyone can understand. This is a very rare skill. Pls keep up the great work
Hi Tim I am new to investing, does this concept still apply to the rules of investing. I am asking this question because the video was posted years ago and I am only watching in 2020?
It's a talent that you have that you are able to go a "no-nonsense teaching" stance, and don't sound boring. I figured you're passionate at teaching! Cheers!
4 years ago I saw video for the first time... I didn't understand a lot. Today I understand almost 75%. I saw this video already at least 10 times and I always come back to this video when I want to invest in some particular stock (your video is 100 R.O.I.)...
What a refreshing and simple video. We are not taught about this in school if we do not take courses of this subject matter. Very helpful. Thank you for teaching!
khegdahl - bond investors can use most of these ratios, however their focus will be more heavily on things like interest cover and gearing plus cash flow. Loan covenants usually specify the ratios that are used to judge a default and the tolerance for the particular issuer and bond. Hope that helps a bit!
@5:00 companies that are less generous with sharing the profit with shareholders don't necessarily use the extra money to invest in the company... Often they are more concerned with lining there own pockets
Recently I got into the youtube financial niche, and I’ve taken a deep dive into investing, particularly dividend growth investment as it interests me. Tried several methods trying to figure out the best approach to building my portfolio. So far, I’m making progress with the help of my financial advisor. Back to the video, wonderful job there, always look forward to your next content.
Came across Egan Hestral at an investment webinar. You can get all the information you need, just leave him a message if you have inquiries Eganeastrell (a) g ma il. Com....you can look him up if you like
Thank you for sharing your outstanding videos and great explanations, Tim! In this segment you talk about key numbers that every investor should know. Are these applicable and equally relevant to both equity investors and debt investors (i.e. bondholders and traditional lenders/banks), or should debt investors also look for other key numbers/aspects? Many thanks and kind regards
What if the (FCF/Share)/PE is just 0.15.. seems to be in cash crunch..but the company is undergoing a lot of development and building up a new plant..can this be an exception? The P/E is close to 19.95 and EV/EBITDA is close to 11.4
3:53 So if i buy a few shares and attend a shareholder's meeting, I am permitted just to tell them my thoughts about the company and make proposals? even though I clearly don't have sufficient financial knowledge.
That's great stuff Tim. Thanks so much. So simple to understand and right to the point. Unfortunately some of these terms are not even taught at school, including PEG and EV/EBITDA
Many thanks for the brilliant videos, sir!! Please keep it up. I am however concerned at the over-dependence on earnings figure of the ratios that you mention. I do appreciate that it is building a snapshots picture, but the earnings figure is overly subject to accounting conventions, which can make it vary wildly. Wouldn't it be far more effective and informative to focus on cashflow ratios as an indicator? Many thanks.
For someone who was daunted by all the variables of stock trading, I really get a much more firm understanding of it from your videos. Definitely keep making them sir.
@@smokingjoe8039 your stop loss on red and black Is simply setting your maximum limit to which you want to play, but I agree with the statment that it Is not gambling
Great video. Of course, if you are not interested in buying and analysing individual stocks the solution is mutual funds/ETFs that buy stocks with favorable ratios.
How do we know (in absolute numbers) what is considered “high” and what “low”? Do we have to compare the values to similar companies or is there a refrence range of sorts?
Very enlightening video, Tim. I'm a 2nd year university student who has worked really hard to the point that I will graduate without any debt. In addition to that, I have a sizeable amount of money saved "under the matress" so to speak. I have only realized recently that I will need it to grow to at least keep up with inflation costs of goods & services. I've read & heard so many horror stories about the stock market so watching this has at least allowed to understand the basics. Thanks again
where are these videos that you talk about? Have they been made yet? I think ive spotted one of them. Could you post annotations that are linked to your vids? Or at least put them in your description? Cheers :)
Outstanding video tutorials....Excellent instruction method. Very gifted capability of taking the complex and breaking it down to a very palatable and understanding form..
Unfortunately, although I pick my stocks based on these key figures, but my stock portfolio still disappoints. Isn't it true that most professional managers underperform the broader market anyway? Do they not know these "key numbers" well? If so, why do they still underperform so often?
Thank you for posting this insightful video. I am looking to invest in my future, and I am a mature (age 35) International (Black American) student at a UK University. I am studying BSc Accounting and Finance. Your video makes it clear what the terms mean.
Like Tim said, Uni's don't teach this not even on an economics course. I've often wondered how people want to get into banking / finance / investing from an early age. I assume it comes from parents and thier teaching.
It's a wonder anyone buys shares i have always wondered ok "I've studied all these companies the PE the Profit Loss Debt Price to book Etc, but who the hell else is and how do i know they are studying the one i am and how do i know it's going up or down based on those stats" omg it does ya head in : )
Beautifully presented, clear and concise. What about buying into equity of startups?, I recently went all-in on three new tech startups and don't know a thing =D I'm very happy with my investments because at least two seem to get firmer and firmer ground (over two yrs of development). Do you have any on the topic of startups and the chances (and risks) involved with investing in them? Common and Preferred Stock?
@@Indian.badger Ok, ahhm, I meant relative to professionals or experienced retail investors let's say. Because ofc I know the revenue models and understood the opportunities (quite well) when they came into eyesight. They are fintech and some may pop to the moon. And it's only when it pops for me that I'll put time in honing my skill in order to test if it could show more opportunities down the road. Thanks for the care bro ! Wish you well.
having a bit of an issue with capm no one at work or RO2/J10 have been able to help with - if CAPM is to find out the E(Ri), and is E(Ri)=[Rf+β(Rm-Rf)] and β=E(Ri)-Rf/E(Rm)-Rf, why do the CAPM if you already know E(Ri) which is needed to find β ????
+David Buckley Because you need β to find E(Ri), but you don't use E(Ri) to find β. Beta is found using statistical analysis: covariance of Ri and Rm and variance of Rm. CAPM: E(Ri)=Rf+ β (Rm-Rf) Beta: β =cov(Ri,Rm)/var(Rm). 7 months later, I'm sure you know this by now-- but it might help someone else.
investors target is long term profit and new updated concepts like new payment of projects creators in cash and ledu coin a concept of liveedu, more are expected.
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Tim, you have a rare skill of being able to demystify complex concept in terms that anyone can understand. This is a very rare skill. Pls keep up the great work
نممممموومممنننمممك
Önce Vatan are you serious??!!
@@domi9205 This aged poorly...
6 Numbers every investor should know:
1. Growth: EPS and P/E; P/B; EV/EBITDA; PEG (Price to Earnings Growth)
2. Income: Dividend yields and covers
3. Perks
Cindy Soh thanks 🙏🏿
Thanks
Can i have your number too
@@lupanntu lol😂
We had a few production issues with this video unfortunately. Sorry! Hope you can at least hear, if not see, me.....
Video start: 2:13
Thank you good sir
Thank you LL M!!!
🙏
Sadly many universities don't teach this stuff but they probably should. But then I am biased! Tim.
Hi Tim I am new to investing, does this concept still apply to the rules of investing. I am asking this question because the video was posted years ago and I am only watching in 2020?
@@dgo1749 Yes, it absolutely does
I couldn't agree with you more
This video was made 7 years ago and it could've been made yesterday such is Tim's consistency in style. Love it.
A0
It's a talent that you have that you are able to go a "no-nonsense teaching" stance, and don't sound boring. I figured you're passionate at teaching! Cheers!
4 years ago I saw video for the first time... I didn't understand a lot. Today I understand almost 75%. I saw this video already at least 10 times and I always come back to this video when I want to invest in some particular stock (your video is 100 R.O.I.)...
Hello NicosMind, my other videos are accessible via the moneyweekvideos hyperlink.
All the best Tim
If it wasn't for you, I wouldn't have understood about this so quickly and easily. Thank you, Tim, I hope you see this somewhere in the future.
I love this guys explanations. He's like a college professor~
What a refreshing and simple video. We are not taught about this in school if we do not take courses of this subject matter. Very helpful. Thank you for teaching!
Awesome breakdown. Wish I came across this earlier in school.
You're such an awesome teacher. Thank you
Great videos, fantastic teaching. It would be really helpful if you could include links in the description to separate videos mentioned throughout.
Great Video, thank you. If the Price to Book value is say below 0.5 does that become concerning for you?
khegdahl - bond investors can use most of these ratios, however their focus will be more heavily on things like interest cover and gearing plus cash flow. Loan covenants usually specify the ratios that are used to judge a default and the tolerance for the particular issuer and bond. Hope that helps a bit!
Thank you. This will definitely help. So, which is always better to go with when using this, S&P 500, NASDAQ, DOWJI OR NYSE?
Wish ya'll never stopped making these highly knowledgeable videos
Rewatched due to covid 19 quarantine. Thanks
@5:00 companies that are less generous with sharing the profit with shareholders don't necessarily use the extra money to invest in the company... Often they are more concerned with lining there own pockets
I really enjoy your videos sir. You're a great teacher. Thank you for giving away your priceless knowledge.
That's it from me at Moneyweekvideos but do feel free to stay in touch via Twitter at @TimEditor
What a great teacher, thanks for doing these videos Tim
Recently I got into the youtube financial niche, and I’ve taken a deep dive into investing, particularly dividend growth investment as it interests me. Tried several methods trying to figure out the best approach to building my portfolio. So far, I’m making progress with the help of my financial advisor. Back to the video, wonderful job there, always look forward to your next content.
Came across Egan Hestral at an investment webinar. You can get all the information you need, just leave him a message if you have inquiries Eganeastrell (a) g ma il. Com....you can look him up if you like
Hi Tim, thank you for your video. Do you have any excel file to help us? So we could just put the numbers into it? Take care.
This chap is great. Can we have him back in this channel? I don’t see him posting more appearing lately.
Thank you for sharing your outstanding videos and great explanations, Tim!
In this segment you talk about key numbers that every investor should know. Are these applicable and equally relevant to both equity investors and debt investors (i.e. bondholders and traditional lenders/banks), or should debt investors also look for other key numbers/aspects?
Many thanks and kind regards
This is so money. I'm subscribing. Thank you.
What if the (FCF/Share)/PE is just 0.15.. seems to be in cash crunch..but the company is undergoing a lot of development and building up a new plant..can this be an exception?
The P/E is close to 19.95 and EV/EBITDA is close to 11.4
Awesome. You've clarified my greatest obstacle to putting money in the stock market; understanding the numbers.
In 12 mins you explaned more than any book ive read
3:53 So if i buy a few shares and attend a shareholder's meeting, I am permitted just to tell them my thoughts about the company and make proposals? even though I clearly don't have sufficient financial knowledge.
Great introduction!! Thank you!
Superb explanations on these issues - the textbooks seem to what to over complicate many of these things...
Great teacher!!!! keep up the good work.
What about the beta value? Do you feel like investors should concerned with that number? Thanks for your video and your input!
Nice video. Unfortunately u didn't provide links to your other in-depth videos about the various numbers
It is enterprise value . How ever in other terms it can be called embedded value or sometime earned value .
That's great stuff Tim. Thanks so much. So simple to understand and right to the point. Unfortunately some of these terms are not even taught at school, including PEG and EV/EBITDA
Many thanks for the brilliant videos, sir!! Please keep it up. I am however concerned at the over-dependence on earnings figure of the ratios that you mention. I do appreciate that it is building a snapshots picture, but the earnings figure is overly subject to accounting conventions, which can make it vary wildly. Wouldn't it be far more effective and informative to focus on cashflow ratios as an indicator? Many thanks.
For someone who was daunted by all the variables of stock trading, I really get a much more firm understanding of it from your videos. Definitely keep making them sir.
hi there are no variables you buy a stock and you gamble and IF it goes up you sell,if it goes down u lose your shirt its that simple.
Investing is not the same as gambling. You cannot put a stop-loss on red or black!
@@smokingjoe8039 your stop loss on red and black Is simply setting your maximum limit to which you want to play, but I agree with the statment that it Is not gambling
That's what youtube is for man. The university of the future.
Great video. Of course, if you are not interested in buying and analysing individual stocks the solution is mutual funds/ETFs that buy stocks with favorable ratios.
So wheres the Cover video?? Ive searched your channel and cant find it :(
you should really put links to the mentioned videos in the description.
What are the best resources that chart all of those 6 Numbers for Stocks?
y do you want to chart them?the numbers are meaningless.
Many thanks Tim. The mystery of the numbers now makes a bit more sence. I'l take a look at your recommened videos on this topic.
As always, Great work! This video is very helpful. Learned a lot through this video. Thank you very much Tim!
It's very easy to be understood, thank you for the video!
goosebumps with that pen... =/
How do we know (in absolute numbers) what is considered “high” and what “low”? Do we have to compare the values to similar companies or is there a refrence range of sorts?
Taken or skill or both; you know how to teach. Thank you for your work.
How does one determine whether PE ratio is high or low. What's the benchmark against which it can be compared
what uni teaches this stuff? and what course?
Very enlightening video, Tim. I'm a 2nd year university student who has worked really hard to the point that I will graduate without any debt. In addition to that, I have a sizeable amount of money saved "under the matress" so to speak. I have only realized recently that I will need it to grow to at least keep up with inflation costs of goods & services.
I've read & heard so many horror stories about the stock market so watching this has at least allowed to understand the basics.
Thanks again
Hit me up and we put a businesse to life
Messenger. wilfride driver
the title is not right, it should be "6 more separate videos that investor should watch on my channel"
Thnx a lot for sharing your knowledge. You amazing tutor 👌👌👍👍
God bless you are simply amazing...I love the way you put things into perspective
where are these videos that you talk about? Have they been made yet? I think ive spotted one of them. Could you post annotations that are linked to your vids? Or at least put them in your description? Cheers :)
Outstanding video tutorials....Excellent instruction method. Very gifted capability of taking the complex and breaking it down to a very palatable and understanding form..
may i donate to this channel?
I GENUINELY LOVE YOU
is EV embedded value or enterprise value? i've never heard of enterprise value.
Can you suggest a good book
I need the standard value of each number so that I can evaluate the company?
Would you mind to give us the examples : what do those numbers meant?
Awesome Guy,Keep The Video Coming! Cheers
Great video, thanks.
Amazing video, cheers mate.
Great stuff - with a good balance of technical material and lightness (of material I mean)!
Just listening now do the rules mentioned in this video apply still or have things changed since this video was made i am a beginner by the way
???
@@dgo1749 still apply
What is NIBD ( Net interest bearing debt) ?
Great video. After I get through a few of these videos I should be entitled to a CFP license.
Analytical skills . Love it .
Unfortunately, although I pick my stocks based on these key figures, but my stock portfolio still disappoints. Isn't it true that most professional managers underperform the broader market anyway? Do they not know these "key numbers" well? If so, why do they still underperform so often?
Could you please recommend books?
Thank you for another good video. Would curiously like to know what some of the other numbers would be. Since you said there would be more. :)
Thank you for posting this insightful video. I am looking to invest in my future, and I am a mature (age 35) International (Black American) student at a UK University. I am studying BSc Accounting and Finance. Your video makes it clear what the terms mean.
Always brilliant presentation thank you!
This is really good, very helpful :-)
yeah and what about Debt to earnings and debt cost to earnings
Like Tim said, Uni's don't teach this not even on an economics course. I've often wondered how people want to get into banking / finance / investing from an early age. I assume it comes from parents and thier teaching.
Full details . Thankyou
Thanks a lot Tim, for this interesting video . All the best regards
It's a wonder anyone buys shares i have always wondered ok "I've studied all these companies the PE the Profit Loss Debt Price to book Etc, but who the hell else is and how do i know they are studying the one i am and how do i know it's going up or down based on those stats" omg it does ya head in : )
Beautifully presented, clear and concise.
What about buying into equity of startups?, I recently went all-in on three new tech startups and don't know a thing =D I'm very happy with my investments because at least two seem to get firmer and firmer ground (over two yrs of development).
Do you have any on the topic of startups and the chances (and risks) involved with investing in them? Common and Preferred Stock?
If you don't understand the business model how the firm makes it profit than its not good sign bro !
@@Indian.badger Ok, ahhm, I meant relative to professionals or experienced retail investors let's say. Because ofc I know the revenue models and understood the opportunities (quite well) when they came into eyesight.
They are fintech and some may pop to the moon. And it's only when it pops for me that I'll put time in honing my skill in order to test if it could show more opportunities down the road.
Thanks for the care bro ! Wish you well.
Anyone noticed how Tim is very similar to Michael Mosley?
very enjoyable, Thank you.
having a bit of an issue with capm no one at work or RO2/J10 have been able to help with - if CAPM is to find out the E(Ri), and is E(Ri)=[Rf+β(Rm-Rf)] and β=E(Ri)-Rf/E(Rm)-Rf, why do the CAPM if you already know E(Ri) which is needed to find β ????
+David Buckley Because you need β to find E(Ri), but you don't use E(Ri) to find β. Beta is found using statistical analysis: covariance of Ri and Rm and variance of Rm.
CAPM: E(Ri)=Rf+ β (Rm-Rf)
Beta: β =cov(Ri,Rm)/var(Rm).
7 months later, I'm sure you know this by now-- but it might help someone else.
+Judy nicholsun adding free money to the phone wallet please
Really good video loved it!
Wonderful explanation. Remembering my finance professor in my college days. Maddy
Excellent.. thanks..👍
Thank you...
investors target is long term profit and new updated concepts like new payment of projects creators in cash and ledu coin a concept of liveedu, more are expected.
Thanks for this bro
Thank you.
Fantastic job mate !!
great work.
You're brilliant tim
Oh and thanks again for the video :)