Hi Everyone - This is one of many investment educational videos I'd like to put out. Naturally I understand these are less entertaining for many of you (especially if you already know the subject topic), but I see a lot of people struggling to grasp financial and investing topics so I will be doing these videos as well as "current topics." Also sorry for some audio issues in the video. Hope you learn something new!
@@webuyrealestate2892 You know, I kind of wanted to talk about that in this video then just forgot. I briefly discuss it in this video here though: ua-cam.com/video/wzKb2iw9BBw/v-deo.html
Hey buddy! Just wanted to let you know I really appriciate your videos! It'ls clear that you have a lot of knowledge and it's great that you want to share some of it! Best regards Chris
I just want you to know, that I finnaly understand what P/E, Fw P/E and PEG mean. You explain it absolutely perfectly and on simple but great example. Thank you very much. I wont skip the the ads on each of your videos to support you.
Oh God! I just realized I fell asleep in the midst of this video. I will have to start all over again. I don't know how the video is and whether I will learn anything from it, one thing is for sure. Your voice has cured my insomnia! Thanks for that.
Bitcoin pumps the day after you finally release a video after all this time unrelated to crypto. First higher higher since 2017 as you know. Also thanks for always starting your video with "today were going to be talking about..." this is the kind of consistency I need in my life.
Amazing video. You use simple examples which makes it easy to understand the complex financial. I will continue learning from your videos because you slowly but consistently explain everything. Although in this video I understood that PE is a good indication of knowing if a company is a good buy, but also that it isn't a good indication on its own.
I now have even less of an idea of what to invest in. Are high P/Es good or bad? In the hypothetical, high P/E was bad, but in the case of Netfix, Facebook, Verizon, At&T, GM, and Ford, it was good. So how do I determine if it's good or not?! If Peg is low, then P/E doesn't matter? Is PEG or P/E or EPS more important? If so, by how much? How do you know a high P/E on netflix is good? When does a low P/E mean problems and when does it mean it's cheap? When does a high P/E mean high expectations and when does it mean it's overvalued? How do I know which one will happen?
A good first video under the new channel name. Good length. Good topic. Pronunciation of "tawlk" improving. Non crypto is good. Everything good. Keep doing this.
Update: as of the time of me writing this comment on August 6, 2020, Apple is larger than microsoft. Microsoft is worth 1.61T, and Apple is worth 1.88T. I don't know how long Apple has been ahead, if anyone wants to find out, be my guest
I am really enjoying these videos. Thanks for all the information. I was wondering what your background was/is if it isn't too personal of a question. You obviously have been intimately involved in the industry somehow. Cheers
Very nice video. I actually like it that you pivoted to content about traditional investing, because this is very clear and informative and i already have plenty of sources for crypto.
17:20 wouldn't a high fwd p/e ratio indicate that we'd be experiencing a decrease in the company's profit margin? So wouldn't that mean the EPS fwd would be low? Or would it mean the high fwd P/E ratio is indicating an increased demand for the shares, driving its price up? It's both, right?
A much better valuation metric is the EV/FCF ratio - a low P/E ratio company isn't necessarily cheap, because if their CAPEX and debt repayments are through the roof, we as shareholders never get paid - this effectively defeats the purpose of investing, which is to get more money out than we put in and not have it going to the bank!
Yes technically. But the earnings per share is not the only way investors like you and I generate return from our stock. Our stock price will also rise in price (if the fundamentals and technicals are good), so we dont necessarily have to wait for 15, 20 years to breakeven. Hope this helps!
I’d speed this up a little, get rid of dollar signs, writing pe after each, and explaining the math more than one column. Just helps keep our attention
Thank you for this video. I found its easy to digest and I appreciate your teaching style. I look forward to following your page and learning from your additional content.
Hi, can you please give some advice for people who are interested to invest in the field of VR long term? I believe it will be much much larger and we're at the beginning stages.
Great that you are moving in a new direction. Personally, your opinions about crypto were great because they were sane in a world of madness. General investment fundamentals are not really what I need in a youtube channel. Well appreciated all the time spent with you and best of luck! Unsubscribe.
Oh boy, the magical ratio that, just like 'Whose line is it anyway', where perceived company valuation is made up, and the resulting numbers don't matter. :) I agree that everyone should know how to calculate such things and know what they are for others....but....I also believe that no one should use them to determine anything because it's practically worthless. New investors don't know it very well to use it, and older investors ignore it to look deeper into the companies holdings and growth....so making it wildly pointless for financial sites to even post it (I feel like they get a kick out of showing off useless information just to bring the dopes in to invest for various crap shoot companies - a conspiracy of the rich to fleece idiots). It's like saying that stocks follow fibonacci patterns.....and yet no one can consistently beat the market with them, weird. lol
I hope to impart that they aren't a one-stop shop to make decisions for you, but multiples (such as P/E) are by far the easiest way to identify a stock's (or the stock market's) temperature without hardly needing to know a single thing. Makes it an excellent tool that adds onto other research due to its sheer speed. It's funny - this video is 20 mins long and I still didn't mention so much about a ratio that's just a simple calculation and posted everywhere.
@@CryptoInvestor ... like I said, I agree with you that everyone should know about it, don't take my criticism of a number personally (last time I commented on your stuff, I guess I came off real sour, sorry). I do like the fact that you said "there are other factors you should take in"....but honestly, if you have to do "more work" then (in my opinion) the ratio is dumb to have. I personally would rather have a different set of ratios displayed on the front page of a stock report.... 1. DS - dividend strength, a percentage of how many dividends were given out in the last 5 years (so divided by 20 for quarterly, or divided by 60 for monthly) 2. DG - dividend growth, the mean rise average incline (or decline) on the dividend return over the last 5 years These are far better for first time investors, and I use them far more than any other indicator for company outlook (because a company that can keep their numbers in the black even after issuing dividends, is ok in my book). Plus, dividend companies usually have a better premium for their options, allowing some extra money if you know what you're doing. I just can't stand companies that don't give anything to shareholders, and votes don't really matter (because they own 51%, so our say has no bearing). But, that's just my opinion.
Thank for the teaching Lesson you got my sub 👍 💯 simple and straight to the point and easy to understand thank you for being really detailed and specific
Suppose Share Price = $100 and EPS = $8. Then PE = 12.5 would mean that for every $12.5 the investor puts into purchasing a share, he will get $1 earning at the end of the year. Now my question is this: Why don't we use EPS / Price (i.e., 12%) as a direct measure of profitability instead of using PE Ratio?
Hi Everyone - This is one of many investment educational videos I'd like to put out. Naturally I understand these are less entertaining for many of you (especially if you already know the subject topic), but I see a lot of people struggling to grasp financial and investing topics so I will be doing these videos as well as "current topics." Also sorry for some audio issues in the video. Hope you learn something new!
You're doing the right thing. Keep going.
Hey Truth Investor, did you used to have a Bitcoin channel?
Nevermind I just looked through, your old videos and realized you're the same guy. Good idea to rebrand the channel.
Truth Investor how about the CAPE ratio?
@@webuyrealestate2892 You know, I kind of wanted to talk about that in this video then just forgot. I briefly discuss it in this video here though: ua-cam.com/video/wzKb2iw9BBw/v-deo.html
“Let’s say 2020 is going to be an AMAZING year”
This aged well...
Best explanation of PE ratio I’ve found! Thanks
Hey buddy! Just wanted to let you know I really appriciate your videos! It'ls clear that you have a lot of knowledge and it's great that you want to share some of it!
Best regards
Chris
I just want you to know, that I finnaly understand what P/E, Fw P/E and PEG mean. You explain it absolutely perfectly and on simple but great example. Thank you very much. I wont skip the the ads on each of your videos to support you.
Oh God! I just realized I fell asleep in the midst of this video.
I will have to start all over again. I don't know how the video is and whether I will learn anything from it, one thing is for sure. Your voice has cured my insomnia! Thanks for that.
Bitcoin pumps the day after you finally release a video after all this time unrelated to crypto. First higher higher since 2017 as you know. Also thanks for always starting your video with "today were going to be talking about..." this is the kind of consistency I need in my life.
Finally found someone who actually explains things in a very simple manner, subscribed, thanks
You make a phenomenal teacher, appreciate the video.
please do more of these
PLEASE!!!! you explain concepts more than anyone else that i found!!!
liking the current investing vids. a good way to keep the channel going now that the crypto wave has mellowed out
I really like the educational video's and the case study's you show to prove your points. well done!
Love the rebranding. Keep posting. A mix would be nice once in a while
You teach very well! Congratulations!
Totally agree, this is really well explained
Amazing video. You use simple examples which makes it easy to understand the complex financial. I will continue learning from your videos because you slowly but consistently explain everything.
Although in this video I understood that PE is a good indication of knowing if a company is a good buy, but also that it isn't a good indication on its own.
I now have even less of an idea of what to invest in. Are high P/Es good or bad? In the hypothetical, high P/E was bad, but in the case of Netfix, Facebook, Verizon, At&T, GM, and Ford, it was good. So how do I determine if it's good or not?! If Peg is low, then P/E doesn't matter? Is PEG or P/E or EPS more important? If so, by how much? How do you know a high P/E on netflix is good? When does a low P/E mean problems and when does it mean it's cheap? When does a high P/E mean high expectations and when does it mean it's overvalued? How do I know which one will happen?
A good first video under the new channel name. Good length. Good topic. Pronunciation of "tawlk" improving. Non crypto is good. Everything good. Keep doing this.
This video was great, I have been trying to study fundamental topics for a while but never really had it click until this. Thanks!!
Update: as of the time of me writing this comment on August 6, 2020, Apple is larger than microsoft. Microsoft is worth 1.61T, and Apple is worth 1.88T. I don't know how long Apple has been ahead, if anyone wants to find out, be my guest
I am really enjoying these videos. Thanks for all the information.
I was wondering what your background was/is if it isn't too personal of a question. You obviously have been intimately involved in the industry somehow.
Cheers
Very nice video. I actually like it that you pivoted to content about traditional investing, because this is very clear and informative and i already have plenty of sources for crypto.
21:50 Your a great analyst you predicted 2020 would be BAD year. wish I had watch this in 2019.
I followed you through the crypto bubble. Glad to see you are back. This video was great. Really helpful.
Amazing content, I'm really glad i found you during the crypto bubble. The knowledge you offer here is highly appreciated.
You had me listening when you started taking about lemonade and couldn't stop. Super beneficial to me.
by far the best explanation of PE ratios on youtube. thank you!
Thank you. This was more helpful than the 4-minute P/E videos I've watched.
Looking forward to more videos - great stuff, much better than straight-up googling something on the spot.
Enjoying this videos👍
dude, thankyou very much, you dug much deeper into p/e than others
Exelent video . I have been trying to figure p/e ratio out for a while until now. Clear as water. Thanks.
Remarkable content. Much better than crypto
I've watched several videos about this topic or that touch on this topic, but this is by far the best, keep it up
OMG! Thank you! Best breakdown ever!
Could you explain PE ratios next?
Isnt he
@@elijahorozco2960 His video explained it quite well :)
Any chance you can do a video about dividends?
Extremely helpful explanation. Thank you
I love your new videos and I love your old videos. *You nailed it!*
17:20 wouldn't a high fwd p/e ratio indicate that we'd be experiencing a decrease in the company's profit margin? So wouldn't that mean the EPS fwd would be low?
Or would it mean the high fwd P/E ratio is indicating an increased demand for the shares, driving its price up?
It's both, right?
Thanks for this Wonderful Video. You explained it very well. I think this is the best explained video on PE Ratio i have stumbled upon.
Welcome back
15:20 "Let’s say 2020 is going to be an amazing year" Uhm, person from the future, I need to tell you something
18:24 Good Pie?
Appreciate the new videos!
A much better valuation metric is the EV/FCF ratio - a low P/E ratio company isn't necessarily cheap, because if their CAPEX and debt repayments are through the roof, we as shareholders never get paid - this effectively defeats the purpose of investing, which is to get more money out than we put in and not have it going to the bank!
Thank you, very well explained!
Good explanation of the PE ratio and how it can be used
Letters and number in the webpage to small. Numbers you draw to thick and in my opinion, a lot of elements like $
Thank you!
Very informative,thanks.
I’ll be back and better informed 💯👋
Great to have you back! There is one thing I don't get. Isn't the P/E nothing else than the amount of years until you reach ROI?
Yes technically. But the earnings per share is not the only way investors like you and I generate return from our stock. Our stock price will also rise in price (if the fundamentals and technicals are good), so we dont necessarily have to wait for 15, 20 years to breakeven. Hope this helps!
Thanks for putting out this video--you have a great skill for teaching, and this is very useful info!
Thank you so much I finally get it :)
Learning alot good video. Thank you very much.
Using this formula I’m able to predict possible prices for share?? Obviously not the actual price but possibilities??
Excellent explanation! Keep it up a good work and thank you!
Helpful vid, thanks. As a suggestion - you could buy yourself a cheap Wacom or similar, so you can more clearly write on the screen.
I’d speed this up a little, get rid of dollar signs, writing pe after each, and explaining the math more than one column. Just helps keep our attention
very clear explanation. i got it now.
thanks
excellent teaching thanks
Very well explained, Thank you.
Thank you for this video. I found its easy to digest and I appreciate your teaching style. I look forward to following your page and learning from your additional content.
Best explanation ever!
Hi, can you please give some advice for people who are interested to invest in the field of VR long term?
I believe it will be much much larger and we're at the beginning stages.
good stuff! keep up these informative videos
Great video you explained it very well.
Excellent
How are you drawing the arrows on your screen?
If I understand you correctly when it says 5.6 on the P/E TTM earnings, that number 5.6 is not in the millions but $5.6 right not 5.6 million?
Is it smarter to use the PE Ratio on determining the value of a smaller cap company?
This video was great. Subbed.
Thanks for the Vid. Nice to get a refresher on the basics~! Keep it up!
Thank you very clear
Thank you very much for the detailed content, really helps me to have a better idea of the PE ratio!
very well explained. thank you for sharing valuable knowledge
Good stuff!
loving the new content. Expanding beyond crypto is a good choice
Love this and want more
Great content!
Great that you are moving in a new direction. Personally, your opinions about crypto were great because they were sane in a world of madness. General investment fundamentals are not really what I need in a youtube channel. Well appreciated all the time spent with you and best of luck! Unsubscribe.
Great video
Oh boy, the magical ratio that, just like 'Whose line is it anyway', where perceived company valuation is made up, and the resulting numbers don't matter.
:)
I agree that everyone should know how to calculate such things and know what they are for others....but....I also believe that no one should use them to determine anything because it's practically worthless. New investors don't know it very well to use it, and older investors ignore it to look deeper into the companies holdings and growth....so making it wildly pointless for financial sites to even post it (I feel like they get a kick out of showing off useless information just to bring the dopes in to invest for various crap shoot companies - a conspiracy of the rich to fleece idiots).
It's like saying that stocks follow fibonacci patterns.....and yet no one can consistently beat the market with them, weird. lol
I hope to impart that they aren't a one-stop shop to make decisions for you, but multiples (such as P/E) are by far the easiest way to identify a stock's (or the stock market's) temperature without hardly needing to know a single thing. Makes it an excellent tool that adds onto other research due to its sheer speed. It's funny - this video is 20 mins long and I still didn't mention so much about a ratio that's just a simple calculation and posted everywhere.
@@CryptoInvestor ... like I said, I agree with you that everyone should know about it, don't take my criticism of a number personally (last time I commented on your stuff, I guess I came off real sour, sorry).
I do like the fact that you said "there are other factors you should take in"....but honestly, if you have to do "more work" then (in my opinion) the ratio is dumb to have. I personally would rather have a different set of ratios displayed on the front page of a stock report....
1. DS - dividend strength, a percentage of how many dividends were given out in the last 5 years (so divided by 20 for quarterly, or divided by 60 for monthly)
2. DG - dividend growth, the mean rise average incline (or decline) on the dividend return over the last 5 years
These are far better for first time investors, and I use them far more than any other indicator for company outlook (because a company that can keep their numbers in the black even after issuing dividends, is ok in my book). Plus, dividend companies usually have a better premium for their options, allowing some extra money if you know what you're doing. I just can't stand companies that don't give anything to shareholders, and votes don't really matter (because they own 51%, so our say has no bearing).
But, that's just my opinion.
Thanks for the video. What about the negative PE ratio? Also, I read Warren Buffet buys when the PE ratio x PB ratio is under 22.
Good video 👍🏻
Really good video!
extremely helpful content! Thank you!
Thanks for the very educational video! Very interesting
Thanks, well explained!
Really well explained.
The G.O.A.T.
Thank for the teaching Lesson you got my sub 👍 💯 simple and straight to the point and easy to understand thank you for being really detailed and specific
Would be nice if you explained what EPS is when you mentioned it.
Oh, earnings per share?
@@edwardatnardellaca Yes, earnings per share (net income / shares outstanding).
Truth Investor is it per quarter or month or year ?
Suppose Share Price = $100 and EPS = $8. Then PE = 12.5 would mean that for every $12.5 the investor puts into purchasing a share, he will get $1 earning at the end of the year. Now my question is this: Why don't we use EPS / Price (i.e., 12%) as a direct measure of profitability instead of using PE Ratio?
Good job
Thank you very much you help me out I wish I could remember everything you said I guess I'll go over this video a few more times good job thank you
so useful !!
Keep it up!
really good video
Great video!
Great info. Thanks
I really hope you continue to produce content with this quality.