Stock Multiples: How to Tell When a Stock is Cheap/Expensive

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  • Опубліковано 22 лис 2024

КОМЕНТАРІ • 846

  • @ThePlainBagel
    @ThePlainBagel  6 років тому +871

    Happy Friday everyone! Have you ever used multiples before when making an investment decision? Which ones do you tend to use? Let me know!

    • @KzLollapalooza
      @KzLollapalooza 6 років тому +15

      This is going to be a million subscriber channel, please keep up the good work

    • @JBulsa
      @JBulsa 6 років тому +7

      do a vid on the $1 put option. paper trade from beginning to end on Robin Hood.

    • @farles777
      @farles777 5 років тому +2

      P/FCF

    • @dynastus
      @dynastus 5 років тому +1

      A few, P/FCF, P/NTA(or NAV), RoE(if you'd call that a multiple), D/E. Man, now I think about it...a lot.😅

    • @ifcinvestor569
      @ifcinvestor569 5 років тому +1

      Why don't you talk about 52 week range and day range?

  • @AndersonFair-cy2bb
    @AndersonFair-cy2bb 5 місяців тому +930

    Biggest lesson i learnt in 2024 in the stock market is that nobody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.

    • @FaithAndrada-xo9ou
      @FaithAndrada-xo9ou 5 місяців тому +5

      Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.

    • @BrewerVera
      @BrewerVera 5 місяців тому +3

      Uncertainty... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.

    • @VanessaWilliams-pu8vt
      @VanessaWilliams-pu8vt 5 місяців тому +2

      Could you kindly elaborate on the advisor's background and qualifications?

    • @BrewerVera
      @BrewerVera 5 місяців тому +6

      Just research the name Rachel Sarah Parrish . You’d find necessary details to work with a correspondence to set up an appointment.

    • @VanessaWilliams-pu8vt
      @VanessaWilliams-pu8vt 5 місяців тому +1

      I searched for her name on the internet, found her page, and reached out via email to schedule a conversation. Thank you.

  • @Riggsnic_co
    @Riggsnic_co 6 місяців тому +540

    Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.

    • @LindaHaire
      @LindaHaire 6 місяців тому +4

      Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $200k portfolio is down by approximately 20 %, any recommendations to scale up my returns on investment

    • @Syndiewndell
      @Syndiewndell 6 місяців тому +3

      Nobody knows anything You need to create your own process, manage risk and stick to the plan, through thick or thin While also continuously learning from mistakes and improving.

    • @kevinmarten
      @kevinmarten 6 місяців тому +3

      Exactly why i enjoy market decisions being guided by a pro , seeing that their entire skillset is built around going long and short at the same time both employing risk management and market experience , been using a portfolio-coach for over 2years+ and I've netted over $3million in that time frame.

    • @kevinmarten
      @kevinmarten 6 місяців тому +3

      Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

    • @LindaHaire
      @LindaHaire 6 місяців тому +2

      She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.

  • @alexsiryj
    @alexsiryj 5 років тому +2571

    Just look at the stocks that I've purchased and wait a couple months. The price will go down, trust me.

    • @yihtorng
      @yihtorng 5 років тому +72

      short it then lol

    • @dilipkumar6225
      @dilipkumar6225 5 років тому +439

      @@yihtorng then it would go up LOL.

    • @mrjiries1033
      @mrjiries1033 5 років тому +17

      What are the stocks that you bought?

    • @finsimple4396
      @finsimple4396 5 років тому +264

      @@yihtorng "ShOrT iT tHeN" Yeah just recommend beginners to short and they end up in debt for the rest of their lives, lmao.

    • @KOJITAHBAWZ
      @KOJITAHBAWZ 5 років тому +17

      @@finsimple4396 short tsla win

  • @VarietyG4MER
    @VarietyG4MER Рік тому +52

    I recently graduated about a month ago from college with a degree in finance. I wanted to ego over my course material and came across this video. This is EXACTLY as it was taught to me in uni. Great video sir. Thank u

  • @MaximilianFischer497
    @MaximilianFischer497 2 місяці тому +793

    Purchasing a stock may seem straightforward, but selecting the correct stock without a proven strategy can be exceedingly challenging. I've been working on expanding my $210K portfolio for a while, and my primary obstacle is the lack of clear entry and exit strategies. Any advice on this matter would be greatly appreciated.

    • @MarshalWagner457
      @MarshalWagner457 2 місяці тому

      The strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off

    • @EvelynBrooks0
      @EvelynBrooks0 2 місяці тому

      I agree. Based on personal experience working with an investment advisor, I currently have $1m in a well-diversified portfolio that has experienced exponential growth. It's not only about having money to invest in stocks, but you also need to be knowledgeable, persistent, and have stron;g hands to back it up.

    • @TicheDebb0
      @TicheDebb0 2 місяці тому

      How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the drivin;g force behind your success?.

    • @EvelynBrooks0
      @EvelynBrooks0 2 місяці тому

      “Sonya Lee Mitchell ’’ is the licensed fiduciary I use. Just research the name. You’d find necessary; details to work with a correspondence to set >up an appointment.

    • @AshleySommerset808
      @AshleySommerset808 2 місяці тому

      She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing_.

  • @donaldwayne7023
    @donaldwayne7023 2 місяці тому +444

    I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.

    • @JenniferDavis7630
      @JenniferDavis7630 2 місяці тому +2

      Investing in different kinds of assets can mitigate risk more effectively than placing all of your capital in one. See a financial professional if you don't comprehend finances well enough.

    • @EthanBrown_23
      @EthanBrown_23 2 місяці тому

      A multitude of individuals downplay the significance of advice until their own emotions become unbearable. A few summers ago, after a drawn-out divorce, I needed a big shove to stay afloat with my firm. I located the most qualified advisor after searching for licensed advisors. Despite inflation, she has helped me grow my reserve from $275k to $850k.

    • @Angelinacortez495
      @Angelinacortez495 2 місяці тому +1

      You seem to comprehend the market better than we do, so that makes great sense. Who is the coach?

    • @EthanBrown_23
      @EthanBrown_23 2 місяці тому +1

      'Laurelyn Gross Pohlmeier' a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

    • @danieltaylor--65
      @danieltaylor--65 2 місяці тому

      I just Googled her name and her website came up right away. It looks interesting so far. I sent her an email and i hope she responds soon. Thanks

  • @dangremaus1164
    @dangremaus1164 5 років тому +586

    Utilizing forward P/E ratios is what got Enron in trouble. The books were being cooked and management was stating their earnings would constantly keep going up. Because of that, the analysts kept rating the company a "Strong Buy"...up until the glass house started falling apart.

    • @jpcorp2274
      @jpcorp2274 5 років тому +9

      P/FCF

    • @rotierender_lurch
      @rotierender_lurch 4 роки тому +6

      Wasn't Enron a ponzi scheme? That'd mean Enron never stood a "chance to survive".

    • @blessingaliu123
      @blessingaliu123 3 роки тому +17

      @@rotierender_lurch it was but most people who had invested didn’t realise until news came out

    • @JoelChenFa
      @JoelChenFa 3 роки тому +2

      @@jpcorp2274 FCF reported by? The company (Totally no fraud possible)

    • @jordanleo
      @jordanleo 3 роки тому +3

      @@jpcorp2274 what is FCF?

  • @drod3434
    @drod3434 5 років тому +302

    I’m not a big time investor but what has worked for me in the past is very simple. Is the business revenue increasing year over year? Is the business making a profit? Does the business have good cash flow and is operating on a 15-20% margin? Does the stock pay dividend If yes I buy. Keep mind the difference between a trader and a investor

    • @tabaresweddingfilms
      @tabaresweddingfilms 4 роки тому +25

      D Rod I am not even that good with terminology and analysis of stocks but that strategy has been working for me too, my only conditions are, has the stock been moving up for more than 5 years, is the company reliable, does it pay dividend... if yes then buy.

    • @darrylbennett5092
      @darrylbennett5092 4 роки тому +1

      Same here. Those seem to be good foundational points

    • @Gioxtream
      @Gioxtream 4 роки тому +5

      HUMMM. GIVE US SOME STOCKS AS EXAMPLE.

    • @tabaresweddingfilms
      @tabaresweddingfilms 4 роки тому +4

      Gioxtream right now is not a good time to buy because the whole market is declining due to the corona virus in china but good stocks are apple, netflix, facebook, s&p500, VOO ..... etc.

    • @kefirmma4765
      @kefirmma4765 4 роки тому +29

      @@tabaresweddingfilms if you think Netflix is a good stock then you really don't know what you are doing. Stick to ETFs

  • @PhantomSavage
    @PhantomSavage 3 роки тому +220

    Though multiples seem helpful, I'd argue probably one of the more important things is consistent positive cashflow and low or no debt.
    "Companies that have no debt can't go bankrupt."

    • @jackhoff8574
      @jackhoff8574 3 роки тому +3

      true

    • @Shrutes
      @Shrutes 3 роки тому +45

      company with no debts also grow slowly!

    • @lukaslarsson3136
      @lukaslarsson3136 3 роки тому +9

      Thats the definition of a value stock, usually used for dividends. Those pay way less than growth companies have the potential to. Altough since they have much more equity/share they are safer

    • @JoelChenFa
      @JoelChenFa 3 роки тому +3

      Except fraud exists

    • @Mathignihilcehk
      @Mathignihilcehk 3 роки тому +10

      Assuming the company doesn't get sued, yes. Companies with no debt can still go bankrupt during a lawsuit.

  • @christianfaux736
    @christianfaux736 4 роки тому +452

    The question of "is this share selling cheaply?" became really easy to answer in March of this year, lol.

    • @c0dakw0lfgaang48
      @c0dakw0lfgaang48 4 роки тому +12

      😂😂😂😂
      way to rub it in the faces of those who were longing their stock positions.

    • @rylanbrownlee8614
      @rylanbrownlee8614 4 роки тому +3

      not necessarily

    • @TheCandyMan01
      @TheCandyMan01 4 роки тому +14

      Yup, it just gives you the opportunity to buy more at a cheaper rate.

    • @MrAtrice
      @MrAtrice 3 роки тому +12

      Unfortunately I started looking into stocks right before it dipped hard

    • @ps-yk8su
      @ps-yk8su 3 роки тому +8

      The best times to buy in 2020: March 18, May 15, July 1, October 29. 100k would have become 200k. 200k would be 400k. 400k would be 800k. 800k would be 1.6M.

  • @SilvesterMiles-y4j
    @SilvesterMiles-y4j 2 місяці тому +366

    LOL, been sitting on my $332k 'emergency fund' for ages, and I still can’t figure out when to dive into the market. These stock multiples confuse the heck out of me. Anyone know a cheat code to make sure I don’t overpay for a stock?

    • @CharlotteJacobsons
      @CharlotteJacobsons 2 місяці тому +3

      I feel you! Honestly, waiting for the perfect moment is like trying to time when my cat stops judging me. 🙄 But hey, an investment advisor helped me sort through that madness. Maybe worth giving one a shot before you sit on that pile forever?

    • @VeronicaOlivers
      @VeronicaOlivers 2 місяці тому +1

      Same boat! I need an investment advisor too, but how do you even find a legit one these days? I keep hearing mixed reviews on who to trust.

    • @CharlotteJacobsons
      @CharlotteJacobsons 2 місяці тому +5

      There are a handful of CFAs out there. I’ve tried a few, but I’ve stuck with Linda Aretha Reeves for a few years now. Her performance has been consistently impressive-she’s well-known and respected in the field. Give her a look!

    • @SilvesterMiles-y4j
      @SilvesterMiles-y4j 2 місяці тому

      Just looked up Linda Aretha Reeves, and she seems like exactly what I’ve been needing to kickstart my financial journey. Appreciate the rec!

    • @claireNymans
      @claireNymans 2 місяці тому +2

      Watched Linda Aretha at the Bloomberg Finance Summit like 4 years ago! Her presentation was absolutely killer. Definitely one of the best in the game!

  • @robb7148
    @robb7148 3 роки тому +21

    While I’ve known about the P/E Ratio, I never quite understood it till now. Your analogy about meat prices is a perfect explanation. Thank you.

  • @Redwood4040
    @Redwood4040 6 місяців тому +366

    Opinions diverge; some claim overvaluation due to rapid gains, while others cite strong economic fundamentals justifying high valuations. Raises concern for my $600K equities going 8% up and 20% down. Should i hold on or sell off my positions and hold cash?.

    • @WestonScally7614
      @WestonScally7614 6 місяців тому +4

      It may be a good idea to speak with a financial advisor who can help you develop a portfolio based on your individual goals and risk tolerance.

    • @SaintYvess
      @SaintYvess 6 місяців тому +3

      I do agree, Investing has gotten difficult especially after pandemic, hence why I decided to use the expertise of an advisor, my spouse kicked against the idea initially, but oh well guess who's best buddies with our advisor now hehehe.

    • @sting_grayl
      @sting_grayl 6 місяців тому +3

      Glad to have stumbled on this comment, I will like to give this a try. Please who is your advisor and how do I get in touch?

    • @SaintYvess
      @SaintYvess 6 місяців тому +2

      *Jennifer Leigh Hickman* is the licensed advisor I use. Just search the name. You’d find necessary details on the web to set up an appointment.

    • @EthanMaloney-qp4lh
      @EthanMaloney-qp4lh 6 місяців тому +2

      Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.

  • @ShukriVikas
    @ShukriVikas 6 місяців тому +535

    Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $560K for sometime now, my major challenge is not knowing the best entry and exit strategie;s ... I would greatly appreciate any suggestions

    • @LancEthan
      @LancEthan 6 місяців тому

      Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.

    • @catherinerea3569
      @catherinerea3569 6 місяців тому +1

      Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.

    • @SheilaAnnerego
      @SheilaAnnerego 6 місяців тому

      Glad to have stumbled on this comment, Please who is the consultant that assist you and if you don't mind, how do I get in touch with them?

    • @catherinerea3569
      @catherinerea3569 6 місяців тому

      Svetlana Sarkisian Chowdhury a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

    • @RomeoSfait
      @RomeoSfait 6 місяців тому

      Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance

  • @ResourceTalks
    @ResourceTalks 6 років тому +393

    *These animations are sooo high quality man! I should start trying this.*

    • @ThePlainBagel
      @ThePlainBagel  6 років тому +47

      Thanks dude! There's an animation program called Vyond that you could try out. It's not what I use but there are other channels that do animations with it, and I've heard good things. You could try that :)

    • @ResourceTalks
      @ResourceTalks 6 років тому +14

      *Thank you, my sir. How long did it take you to finish this video?*

    • @ThePlainBagel
      @ThePlainBagel  6 років тому +44

      I usually spend two weeks making my videos, but that's mainly just editing on my lunch break and anywhere from 3-12 hours of editing over the weekend. I do things pretty manually through Adobe Premiere though, I'm sure Vyond would be a bit more efficient

    • @AdamBechtol
      @AdamBechtol 5 років тому +7

      I'm often curious to hear about animation / video graphic production software. Thanks for this little convo

    • @sammyalabamy111
      @sammyalabamy111 5 років тому +4

      @@ThePlainBagel What animation program do you use?

  • @YSMiracle
    @YSMiracle 4 роки тому +38

    This is the best analogy on how to analyze a company fundamentally based on PE ratio. The example of comparing price of meats in a grocery store really reminds me of what Peter Lynch says in his One Up on Wall Street, and what's better, even easier to understand. Thank you for the smart and hard work. Very appreciated!

  • @ThinkBlueAZ
    @ThinkBlueAZ 4 роки тому +66

    This does a good job of explaining why Buffett exceeded Ben Graham as an investor despite Buffett learning from Graham. Graham looked for value wherever he could find it and ignored the fundamentals of the business. He often found that despite finding a “deal” on the stock it went nowhere. This is due to the fundamentals of the stock. Charlie Munger introduced to Buffett the idea of finding quality businesses bought at a fair value and the rest is history.

    • @hgm8337
      @hgm8337 4 роки тому +3

      Jimoke history being the $50bn they dropped this quarter? Or their underperformance relative to the S&P 500 this past 15-years?

    • @Crozbozy
      @Crozbozy 4 роки тому +1

      So basically just invest in a market ETF

    • @programmer1840
      @programmer1840 3 роки тому

      What would be an example of fundamentals?

    • @JayKay9112000
      @JayKay9112000 2 роки тому

      @@hgm8337 Berk.A has grown 5x since it’s low in 2009, slightly better than SPY’s 2009 low.

    • @JayKay9112000
      @JayKay9112000 2 роки тому

      @@hgm8337 and BERK.A trades at an 8 PE compared to SPY’s 28 PE

  • @jackwyatt9649
    @jackwyatt9649 2 роки тому +22

    It’s easier to make money now, investors should make more practical moves this coming year and seek guidance where needed since the future is unknown. Stocks with solid operational performance and financial strength, should be considered .

    • @noelstout3056
      @noelstout3056 2 роки тому +1

      I think it’s best for investors to play it safe, No one can say what how the stock market will turn out this year. I bought some stocks I expected to do better but they didn’t.

    • @noelstout3056
      @noelstout3056 2 роки тому +1

      Impressive. I’ve been considering stock trading, it’s incredible how much people make daily on the market.

  • @codyrap95
    @codyrap95 4 роки тому +106

    What I got from this video: How to Tell When a Stock is Cheap/Expensive - Answer: You can't

    • @JETZcorp
      @JETZcorp 3 роки тому +14

      You can, just not with perfect accuracy and not from one metric. However if the P/E ratio is 1,200 and the business plan doesn't address how the company will eliminate Agent 007, I think it's safe to call it expensive.

    • @lukaslarsson3136
      @lukaslarsson3136 3 роки тому +5

      @@JETZcorp AKA Tesla

    • @lukaslarsson3136
      @lukaslarsson3136 3 роки тому +3

      You can determine if it is cheap or expensive. There is no true answer what the company should be evaluated though. So you have to speculate on what others will evaluate it in the future

    • @JoelChenFa
      @JoelChenFa 3 роки тому +1

      @@lukaslarsson3136 You can't have a P/E when you dont quite have an E

    • @lukaslarsson3136
      @lukaslarsson3136 3 роки тому

      @@JoelChenFa yes but it will be negative

  • @lcmlcm2460
    @lcmlcm2460 2 роки тому +4

    I’ve been investing for the past 6 months now, like VOO, Coca-Cola, VT, so far. But I want to find more individual stocks and I’m struggling with the intrinsic value but I’ll get it. Thanks for the video

  • @krabbykrabby8818
    @krabbykrabby8818 4 роки тому +11

    I remember watching you guys channel last year and you've grown a lot since then. The views are well deserved tho, top notch content.

  • @giacomobauer920
    @giacomobauer920 Рік тому +3

    Just a little thank you comment for all the amazing work you do, your channel has truly been a help in explaining core concepts!

  • @WyattSimkins
    @WyattSimkins 2 роки тому +17

    I love the emphasis that the P/E ratio is really only useful with more context. The P/E ratio may be higher or lower than competitors for a GOOD reason, and we have to take the initiative to find out why!

    • @aristidesogato5402
      @aristidesogato5402 2 роки тому +1

      Exactly. I have seen examples of companies with high P/E with ever increasing profits. In essence, they actually WERE great companies and always delivered accordingly. Also, it's unreasonable to expect the amateur investor to be able to find "a good deal" that the market hasn't already embedded in the stock price. There’s no free lunch.

  • @PhilipMurray251
    @PhilipMurray251 8 місяців тому +122

    The markets are looking favorable, after so much deliberation with my wife, I feel this is a good time to invest a lump sum of $700k ahead of retirement. What stock should I Look into to safely grow my money?

    • @Patriciacraig599
      @Patriciacraig599 8 місяців тому +2

      I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such execution are usually carried out by investment experts or advisors with experience since the 08' crash.

    • @Damncars456
      @Damncars456 8 місяців тому +1

      True. Having the right financial planner is invaluable. My portfolio is well-matched for every season of the market and recently hit 90% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, though this could take till Q3 2024.

    • @Robertgriffinne
      @Robertgriffinne 8 місяців тому

      I’ve been down a ton, I’m only holding on so I can recoup, I really need help, who is this investment-adviser that guides you

    • @Damncars456
      @Damncars456 8 місяців тому +3

      'Natalie Ann Brinkman' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.

    • @Robertgriffinne
      @Robertgriffinne 8 місяців тому

      Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.

  • @PinkTaco97
    @PinkTaco97 5 років тому +83

    6:13 "It's Simply not that Simple".

  • @bardacha100
    @bardacha100 Рік тому

    Wouah, by far the best, clearest, and most straightforward explanation I have found on UA-cam !

  • @brandonliao408
    @brandonliao408 4 роки тому +6

    There's just something to Canadian investment channels...the professional eqtiuette and minimalistic styling makes it so intriguing to watch.

    • @nilvoidzero000
      @nilvoidzero000 3 роки тому +1

      I didn’t know Plain Bagel is from Canada. Good to know.

  • @EricSmyth4Christ
    @EricSmyth4Christ 5 років тому +504

    My girlfriend wants to do multiples. Now I know what she means.

  • @DBee-ee7tz
    @DBee-ee7tz 3 роки тому +2

    First of all you're fricken adorable which made watching this video tolerable versus other poorly explained explanations of P/E ratios from non-adorable people. Shallow, yes but I'm owing it! Since you've made P/E ratios crystal clear as one of many multiples when considering stocks, you're earned my trust and I'm now following your channel. Thanks for being adorable!

  • @JohnKelly-jj7ss
    @JohnKelly-jj7ss 8 місяців тому

    Thanks Rich every time listen to one of your podcast’s I learn a little bit. Your P/E one was very good.

  • @firelordsozin3677
    @firelordsozin3677 4 роки тому

    Wow
    I understand multiples and their roles now.
    college was a rip off, ten minutes in this channel and I can discuss more intelligently than my peers in any field

    • @NegativeAccelerate
      @NegativeAccelerate 2 роки тому

      @@davidluong8370 nah, top tier universities dont teach you anything. I’d learn wayyyy more if I went to a shitter school. My university is just concerned with research and the teachers are here for mainly research purposes and couldnt care less about what we learn

    • @NegativeAccelerate
      @NegativeAccelerate 2 роки тому

      @@davidluong8370 « if you don’t got any hustle, it wouldn’t matter what university you go to »
      I think we’re saying the same thing. Universities don’t teach you anything. You teach yourself. I never said I went to a top tier university, but it’s the best in Ireland - Trinity College Dublin. It’s just id have learned way more in a lower tier university.
      You go to higher level institutions, not to learn more, but to have a better looking CV despite learning the same amount, to network and to mature.

  • @theeEXAR
    @theeEXAR Рік тому +4

    I prefer to buy high sell low. I can do it a lot more consistently and I like consistency in my life.

  • @davianbarton9841
    @davianbarton9841 5 років тому +4

    Best P/E ratio explanation video yet

  • @TobyNewbatt
    @TobyNewbatt 3 роки тому

    Really great explainer this one nearly 3 years later :)

  • @unucatine
    @unucatine 5 років тому +11

    is anything better on youtube than this? already watched it 6 times

    • @vberger2
      @vberger2 3 роки тому

      6 times eh? That's because he can't teach it well. Once or twice should be enough if it was presented properly

    • @rafflesxyz4800
      @rafflesxyz4800 9 місяців тому

      Get a life.

  • @orthodoxedeter1657
    @orthodoxedeter1657 Рік тому +1

    One thing I’d add to your analysis -> P/E is extremely impacted by leverage, taxes and, on the contrary, does not reflect how efficient a company is with its cash cycle through NWC nor does it include its regular CapEx.
    I know it’s probably too complicated for a non-financially literate individual to compute the FCF of a stock but I would at least combine a P/E multiple to its EBIT / EBITDA multiples or even Revenue to see how overvalued a stock is compared to its peer group.

    • @ibraheemali9541
      @ibraheemali9541 Рік тому

      I get ur point but warren buffet also says that depriciation is a real expense and should be considered during calculation. peter lynch also uses p/e in his fair value formula in one up on wall street. What if the value of a stock comes out over valued with p/e and undervalued with p/revenue or vice versa?

  • @BusterDarcy
    @BusterDarcy 5 років тому +18

    This was exactly what I needed to know at my current level as a developing investor. Can’t thank you enough for this.

    • @ThePlainBagel
      @ThePlainBagel  5 років тому +1

      Darcy Fitzpatrick glad you found it useful!

  • @ГорулСпенд
    @ГорулСпенд 5 місяців тому

    Your channel has been an absolute lifesaver for me. I was really struggling with binary options before I found your videos, but your strategies and insights have given me a whole new level of confidence when it comes to trading. Thank you so much for all the hard work you put into your channel

  • @alexfernandez6621
    @alexfernandez6621 5 років тому +33

    Great animations, straight to the point, very informative. Keep doing what you do!

  • @King-ql4tg
    @King-ql4tg 5 років тому +4

    "The Flaming Bagel"💥💥💥......my favourite part of the video.
    Good work Richard. I really enjoy your videos.

  • @wordforger
    @wordforger 3 роки тому

    THANK YOU! I've been considering doing some investing, but I have had zero clues on how to go about it. This is helpful.

  • @kuyadexstar5407
    @kuyadexstar5407 Рік тому +4

    Thanks for making it clear that P/E ratios aren't everything. I'm a new investor and you explain this so well! Thanks for the vid and ez subscribe :D

  • @JohnKelly-jj7ss
    @JohnKelly-jj7ss 3 місяці тому

    Thanks good understanding of P/E I learn every time I listen to your podcast

  • @robertmelvin7908
    @robertmelvin7908 5 років тому +8

    Thank you for posting this video, but it's still clear as mud. What has always amused and amazed me are tools such as Yahoo Finance. For many stocks and mutual funds a recommendations chart is provided showing where the experts stand. There's usually 1 to 4 experts that will say "buy or strong buy", 10 to 16 "hold" and 6 to 4 "sell". After I look at all of the charts, the data, info, advice, etc., it usually comes down to my gut.

    • @orestispalampougioukis6043
      @orestispalampougioukis6043 5 років тому +1

      And this is exactly why you do not have anything to gain by having someone invest on your behalf at a fee. It has been proven time and time again that "experts" cannot even consistently beat the market. It is approximately a 50% chance whether they will be able to do it, and when they do it is because of luck and not their ability to do it consistently.
      You are much better off investing into a few index funds in such a diversified way, which gives you exposure to capitalism's growth as a whole.

    • @itanimulll
      @itanimulll 3 роки тому

      @@orestispalampougioukis6043 like which index funds are you looking at now?

    • @Atribecalledsuccess
      @Atribecalledsuccess 3 роки тому

      @@itanimulll look at the etf vids I posted

  • @jacobdaboss8413
    @jacobdaboss8413 4 місяці тому

    I've watched this video so many times throughout the years sometimes just for entertainment.
    But until just now I don't feel like I fully understood everything. Three years of compounding down the drain.
    Oh well 😅
    For anyone else who doesn't wanna waste their time it surely helps to have a platform where you could get reliable numbers from. Btw great video 👍

  • @brotheraugustine
    @brotheraugustine 4 роки тому +6

    This channel is excellent, and you’d have ten times the viewership with more relevant branding. Just a free tip from me in exchange for all the ones I’ve learned from you.

  • @vberger2
    @vberger2 3 роки тому +2

    It's clear that you have a good handle on this subject. It's clear that you did your homework. That's all that's clear tho. Because understanding something and being a teacher are two very different animals.

  • @neuvocastezero1838
    @neuvocastezero1838 Рік тому +2

    Thanks for another great video. Is the value that's reported on earnings day an EPS value? And if so, why does it seem to be different from EPS when I compare them?

  • @Bob-ke9in
    @Bob-ke9in Рік тому

    It's really stuff I already know but it's still very nice to have it repeated so coherently. Thanks.

  • @pzackery
    @pzackery 5 років тому +10

    I have watched three of your videos now on stock market fundamentals. Solid advice, easy to understand language, and great editing. Subbed!

  • @luisjosesalazarserrano264
    @luisjosesalazarserrano264 4 місяці тому

    Brilliant. By far the best video that I have seen to explain this concept. Keep up the great work and thank you!

  • @petergriffin9902
    @petergriffin9902 6 років тому +88

    Thank you!!! I may quit eating bagel but not this channel!

    • @amadeodante
      @amadeodante 4 роки тому

      Peter Griffin You’re gonna stop eating this channel

    • @darthforexvader7201
      @darthforexvader7201 4 роки тому

      Peter Griffin 'rrrrrrrrrrrrrrroad house'

  • @jasonparker5746
    @jasonparker5746 6 місяців тому

    This content is invaluable! Thank you for putting multiples and P/E into perspective!

  • @mklik4
    @mklik4 4 роки тому +4

    Thanks! Do you have a video on how to in depth evaluate a company?

  • @bjrnleosrlund225
    @bjrnleosrlund225 Рік тому

    One thing to consider is how the P can change based on how banks and funds view an industry. I can buy shares in oil-related companies in Norway for lower multiples than some years ago, since some banks and funds no longer invest in those industries.That limits the potensial upside in share price. But make it easier to get a good dividend, since I can get in at a lower price.

  • @antiquarian1773
    @antiquarian1773 4 роки тому +8

    7:30 scared the shit out of me, its night time when I was watching this and that noise literally made me shat my bed. Thanks :D

  • @pja8901
    @pja8901 5 років тому +36

    Great video. Stock picking is hard, which is why very few people beat the market in the long term.
    Until I can pick stocks with certainty, i'll stick to passive indexes with low fees.

    • @andreasmadaj1716
      @andreasmadaj1716 4 роки тому +2

      hey, could you give me please some example of Indexes with low fees and good returns? Tx

    • @pat17yearago75
      @pat17yearago75 3 роки тому +2

      @@andreasmadaj1716 s&p 500?

  • @juanjuan5314
    @juanjuan5314 4 роки тому +4

    Hi! Would it be possible for you to do a video about the efficient market hypothesis? I’d like to know your opinion on this as it is kind of controversial. Thanks

  • @andrewroby1130
    @andrewroby1130 Рік тому

    The world needs a TPB/Benjamin collab on basic finance.

  • @akaashi7415
    @akaashi7415 2 роки тому

    I would really love it if you would start a podcast. If you were down to do something like that maybe try a poll to see if viewers are interested!

  • @GrigoriyBlohin
    @GrigoriyBlohin 3 місяці тому

    Your ideas and strategies are always interesting and effective. Thank you for sharing your experience and knowledge with us.

  • @nierautomata9654
    @nierautomata9654 4 роки тому +23

    “Youre not even sure if thats beef anymore” - that made me laugh haha 😆

  • @ayushsrivastava767
    @ayushsrivastava767 5 років тому +6

    Wow no one have ever experienced pe ratio like you did thank you 👍👍👍

  • @CesarMartinez-gi9de
    @CesarMartinez-gi9de 2 роки тому +1

    In summary, they don’t know, we don’t know, I don’t know, you don’t know, your uncle doesn’t know, if we knew, then the analyst would be right, an analyst is always wrong, what makes you think you’ll be right, this is all based off of hopes and a little bit of historical info, hence why analyst are trending with topics like *Analyst shocked with the results of *insert company that did the opposite of what the analyst predicted* after it sky rocketed* we don’t know anything, so just pray to God you’re right and don’t over exaggerate a call or trade, bless up, keep your hopes up.

  • @nigelpollitt5124
    @nigelpollitt5124 4 роки тому +8

    Useful video. Have you also done one on understanding the fundamentals you mention en passant? And I'd like to know what the story is for non-dividend stocks, eg small caps. How do you know if a non-div stock price is fair, or a south sea bubble?

  • @67tymir
    @67tymir 11 днів тому

    Learning something new in 3-4 mins 🔥🔥🔥

  • @nucleardog6675
    @nucleardog6675 Рік тому

    This knowledge is still very relevant to this day

  • @suniehasan8987
    @suniehasan8987 3 роки тому

    Its all the more important now to take charge of our own financial situation !

  • @JosePerez-gj7kn
    @JosePerez-gj7kn 3 роки тому

    Thanks for your excellent explanation on this matter. I look at this video many times and I start to buy stocks. Have a great day.

  • @13thCharacter
    @13thCharacter 9 місяців тому

    Why'd you get away from this style of video? It reminds me of the old British Moneyweek videos from over a decade ago that got me interested in accounting in the first place. Some really good basic info here. P/E is one of my preferred metrics, mostly because it helps ask the right questions about a company.

  • @ColtonGroves
    @ColtonGroves 4 роки тому +6

    Best video I've seen on this by far!

  • @hankyoung5683
    @hankyoung5683 3 роки тому

    Be helpful to do the division during the video...why is .00001.5 = to 15? Thanks, though, for the wonderfully lucid explanation of the terms.

  • @dantegutihernandez1256
    @dantegutihernandez1256 3 роки тому +1

    im watching your videos from Argentina and you are awesome !

  • @BizTalkk
    @BizTalkk 5 років тому +5

    I’m a big fan of PEG price to earnings growth and the PS ratio for growth stocks that are still in/near their infant stages. Good way to gauge relative valuation, top video mate!

  • @JordonDev
    @JordonDev 4 роки тому

    This sounds like a classic, being in business for 16 years, this video is about 30% accurate. I strongly advise anyone that sees this video to not just go off of this perspective without having a very good understanding of how reality in the business realm works. There is much more to be explained.

  • @johndeanconway7931
    @johndeanconway7931 5 років тому +42

    Most financial experts and advisors consider foreign stocks to be a healthy addition credit to an investor’s portfolio account.

    • @andyosman8375
      @andyosman8375 5 років тому +2

      Most developing stock traders tend to think in terms of how much they can earn from a trade while professional tend to think in terms of money management. Literally it is best to be an investor with an expert trading account it saves a lot in your course.

    • @johnsonlevitt9719
      @johnsonlevitt9719 5 років тому

      I'd be pleased with a 50% increase in my account at the end of the month. How can one certainly profit more in this business, does it mean to minimize the risk by trading with an expert advisory?

    • @johndeanconway7931
      @johndeanconway7931 5 років тому +2

      the gain in stock market, depends on the knowledge and capabilities of trader to produce consistent profits

    • @johndeanconway7931
      @johndeanconway7931 5 років тому +2

      Trading with someone experienced has changed a lot in my approach and instincts. I now see things clearly from my advisory perspective, Jim oddain uses certain trading techniques that’s proficient in his portfolio account.

    • @johndeanconway7931
      @johndeanconway7931 5 років тому

      Use telegram

  • @MrMountain707
    @MrMountain707 Місяць тому

    The only guy I'd buy a course from.

  • @whoeverwhoever400
    @whoeverwhoever400 5 років тому +2

    If you look at GE, last time i checked was $9ish per share but the PE ratio was whopping nearly 400 (399.some)

    • @itanimulll
      @itanimulll 3 роки тому

      So what does that mean

  • @AlienYieldFarms
    @AlienYieldFarms 3 роки тому +3

    I came here to learn how to value a company, but now I have even more to learn :0

  • @Hiraaad
    @Hiraaad 4 роки тому +3

    Didn't know Tesla was in the steak business too, till I saw their logo on the steak at 7:01!

    • @blackseac
      @blackseac 4 роки тому +1

      Hirad Khakipour you have achieved comedy

  • @Big_B2184
    @Big_B2184 4 роки тому +1

    im looking into taking up the stock market, doing all my research cuz i have very little $ to work with, tyhis helped me get a a better under standing of how to get the most out of the little i have. Thx

    • @arysmith4943
      @arysmith4943 3 роки тому

      you can connect a forex expert Rex Coleman on whats app

    • @arysmith4943
      @arysmith4943 3 роки тому

      + 1 7 1 6 2 8 1 5 3 0 8

  • @Kevin_Street
    @Kevin_Street 6 років тому +6

    Thank you for another great video! Multiples are a concept I've had trouble with in the past, but your explanation makes it very clear.

  • @karankapoor9707
    @karankapoor9707 4 роки тому

    Hi , I am a beginner in stock market analysis and I am just covering the theoritical part right now .
    Here are my questions to you-
    Suppose you see a company's average p/e is 10x and its current p/e is 7x
    There can be two reasons why it is what it is
    1) the price of the stock decreased and the earnings per share remain the same lengths . Which is a good sign , I guess
    2) the earnings per share decreased i.e the net profit of the company is on decline . Which is potentially a bad sign . But as deemed by the 2nd case in the video , i.e when potential buyers buy the stocks even more and price of it increases knowing the fact the EPS is decreasing .
    These are my conclusions that are taken of the examples that plane bagle gave in the video . The two graphs shown by him mean the same two cases .
    I doubt it , alot , is this how it really works?

    • @karankapoor9707
      @karankapoor9707 4 роки тому

      Ok , I can now see the bigger picture , in the 2nd case , he mentions the profits being decreased but the stock price still being increased . That means the buyers see a potential in the business to grow . A bang for the buck , in a good way , should I be investing in those type of companies then? Should I follow the flow , or should I just follow my own path , own path seems more safer though .

  • @kennetht9385
    @kennetht9385 5 років тому +3

    So good, easy for me to understand thanks.....also fun video to watch, thanks again

  • @grantbuchanan2953
    @grantbuchanan2953 3 роки тому

    Good video!!! I think my perspective does better than all these multiplies! Cash on hand and no debt mean more to me!!! When everyone tells me they want a iPhone ----that tells me more!!!!!

  • @dakotaborden9272
    @dakotaborden9272 4 роки тому +2

    question, what is the formula for the P/E ratio. How did he get 15 * ?

  • @florianmadison
    @florianmadison 28 днів тому

    One of the most brillian investing advice i have ever gotten on youtube came from watching an interview with Julianne Iwersen Niemann. Indeed, A solid investment strategy is like a well-planted tree-it can withstand storms and still grow strong

    • @georgestone0123
      @georgestone0123 28 днів тому

      I’ve heard of her
      How can i reach her, if you don't mind me asking?

    • @ibrahimaisaadan
      @ibrahimaisaadan 28 днів тому

      ⁠ her name is 'JULIANNE IWERSEN NIEMANN'. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.

    • @georgestone0123
      @georgestone0123 28 днів тому

      I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get

  • @williamsjordan2513
    @williamsjordan2513 3 роки тому +1

    As a forex trader it's almost inevitable that you're going to experience some ups and downs along the way, alertness and decisiveness are both fundamental ingre yupdients in the recipe for a successful forex trader.

  • @nagol1000
    @nagol1000 3 роки тому

    Woah I found actually good investment advice on UA-cam! Subscribed!

  • @axelmartins9284
    @axelmartins9284 3 роки тому +43

    Honestly I feel it goes beyond how to tell if a stock is cheap or expensive, other things come into play before placing a trade. Pattern recognition, stock picking, when to buy or sell, entry and exit points? A few must knows for every newbie before getting around to placing a trade, Don't rush the process. I started profiting from the market when I discovered a better and more effective way to trade and make money. I'll be on to seven figures by years end. Kudos

    • @olivermartins5783
      @olivermartins5783 3 роки тому +1

      Truth be told I'm yet to find a video that breaks down the whole process to a newbies level. When I solve one challenge another pops up. What's the general solution to losses. How have you been profiting? I need a better way to trade

    • @axelmartins9284
      @axelmartins9284 3 роки тому

      Through the decades stock trading has proven to be profitable to several individuals around the world
      But personally you'll never understand how profitable stock trading is until you start investing in the share market
      I got into the trade market with a 6k deposit, today I’ve more than 6 figures saved in just seven months.
      You just have to brace yourself for this rollercoaster ride because it gets real freaky
      And if you aren't properly locked in you'll fall out and incur great detriments to yourself

    • @axelmartins9284
      @axelmartins9284 3 роки тому

      Lol my friends didn’t believe me either when I told them I’d began making good figures off the trade market while in retirement,they thought I did it myself but it was working with a pro risk analyst and trader Noud Mika, he trades on my behalf in the market and generates profits on my behalf his services has been gold to me.They do shout - outs about his services on MarketWatch as he also trades for newbies with difficulties generating profits themselves

    • @bankers_hour
      @bankers_hour 3 роки тому

      Having professional minds guide you isn't much of a bad idea as I find it pleasing and intriguing,Coming from someone who has placed so many trades all gone down the drain is there anyway I could get to your trader ,or at least peruse through his bio..I'm greatly in need of help man

    • @axelmartins9284
      @axelmartins9284 3 роки тому

      His mail is
      @

  • @TheJack411
    @TheJack411 5 років тому +3

    These videos need to be shown in public and private school systems everywhere.

  • @Seoulsearch616
    @Seoulsearch616 2 роки тому

    Best video I've seen about this, thanks so much! 👍

  • @BAIGAMING
    @BAIGAMING 4 роки тому +9

    Haggle Bagel , Sesame Sam's LOL Those names are amazing

  • @rajveerparrish4840
    @rajveerparrish4840 4 роки тому +25

    I know a lot of people are scared of the market crash. Trust me it won’t last forever, we should be expecting an upsurge anytime soon. I will drop some few stocks my portfolio manager suggested i add to my portfolio…. Good luck everyone (VIAC, USMV, SQ)

    • @michaelcarter5917
      @michaelcarter5917 4 роки тому +1

      I’m grateful for those picks especially USMV and VIAC which seems to be moving up for the past 3Days. I think i should buy them now. Thanks so much

    • @alissiahibbert2378
      @alissiahibbert2378 4 роки тому +1

      Who is your Portfolio Manager, what platform does he/she use in trading?

    • @rajveerparrish4840
      @rajveerparrish4840 4 роки тому +3

      My P.M (Mrs Lilian Wan) is an affiliate of TD Ameritrade, she uses her expertise in maximising the profits in my portfolio

    • @stephenbruce8870
      @stephenbruce8870 4 роки тому +1

      I’ve lost a fortune on trading and i don’t think i can go on trading for myself. Robin hood has trusted me this past months, at this point i need professional help. I will really appreciate if you can link me up with your Portfolio Manager.

    • @tahliacastaneda9502
      @tahliacastaneda9502 4 роки тому +1

      I have got SQ in my handpicked ROTH IRA, it is dropping but there’s no harm in buying when low because it won’t stay LOW forever i’m expecting upsurge soon too!

  • @mightyowl1668
    @mightyowl1668 3 роки тому

    Best video on PE ratio

  • @dynastus
    @dynastus 5 років тому +10

    Great video, clean animation, expertly explained. 💯
    EPS(& therefore P/E) isn't my favorite metric for gauging a company. Can't stand companies slipping extra things into their reported eps to bolster the number. It's a great place to start when searching for an investment opportunity though.

  • @mgg8296
    @mgg8296 4 роки тому

    Very good video. I wonder what they would say about Tesla. Their p/e is 1,097!

  • @NicholasRichardson
    @NicholasRichardson 3 роки тому

    Actually laughed out loud, which is a first for a fundamental analysis video 👍

  • @thegriffinwithin
    @thegriffinwithin 2 місяці тому

    That was a great introduction, thank you.