This reflects the actual loss—the amount required to return the car to its pre-loss condition. Despite having $50,000 in coverage, the insured will only receive compensation based on the actual loss sustained, not the full coverage amount. It is common for company bylaws to contain provisions such as indemnification, but Read more…
A typical example is an insurance company wherein the insurer or indemnitor agrees to compensate the insured or indemnitee for any damages or losses he/she may incur during a period of time. Premium payments made by the insured are required to bind the agreement, so the insurer can return or Read more…
Earnings are important when valuing a company’s stock because investors want to know how profitable a company is and how profitable it will be in the future. It doesn’t account for future earnings growth, can be influenced by accounting practices, and may not be comparable across different industries. It also doesn’t Read more…
The company’s price-to-earnings ratio is 10x, which we determined by dividing its current stock price by its diluted earnings per share (EPS). In essence, a higher P/E ratio indicates investors expect higher growth from the company in the future compared to companies with a lower P/E. For example, a given Read more…
Generally speaking, investors and analysts expect the company’s earnings to decrease when its forward P/E ratio is higher than its trailing P/E ratio. Also commonly known as the estimated P/E ratio, forward P/E is useful for investors who want to know what a company’s future P/E ratio might look like. Read more…
Using the trailing P/E ratio can be a problem because it relies on a fixed earnings per share (EPS) figure, while stock prices are constantly changing. This means that if something significant affects a company’s stock price, either positively or negatively, the trailing P/E ratio won’t accurately reflect it. In Read more…
Assessing factors like shareholders’ equity, book value, and EPS growth on the balance sheet – alongside the P/E ratio – enables a more informed view of a stock’s valuation. This additional financial context is key for evaluating risk-return profiles. A higher P/E ratio generally indicates that investors expect higher growth Read more…
If a company’s earnings exceed expectations, the share price tends to rise, resulting in a higher P/E. But calculating, comparing, and interpreting this metric across various sources, timeframes, and scenarios provides a richer perspective for stock research. P/E ratio calculators are handy online tools investors can use to quickly assess Read more…
EPS is found by taking earnings from the last twelve months divided by the weighted average shares outstanding. Earnings can be normalized for unusual or one-off items that can impact earnings abnormally. A P/E ratio of 15 means that the company’s current market value equals 15 times its annual earnings. Read more…
Tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value Read more…