Knowledge base Β· 5 free Β· 9 categories
Speak fluent finance.
Short reads on the numbers that run every earnings report, pitch deck, and broker app β revenue, EBITDA, P/E, free cash flow, and more. Each entry: a one-line definition, the formula, and a worked example. Explanation, never advice.
Is this priced fairly?
- Valuation
Market Capitalization
Share price Γ total shares outstanding. The market's implied price tag for the whole company's equity.
- Valuation
P/B Ratio (Price-to-Book)
Market cap divided by shareholders' equity β how much the market is paying compared to the accounting book value.
- Valuation
P/S Ratio (Price-to-Sales)
Market cap divided by revenue β useful for companies that aren't profitable yet but are growing fast.
- Valuation
PEG Ratio
P/E divided by the company's expected earnings-growth rate β adjusts the P/E for how fast profits are growing.
- Valuation
EV / EBITDA
Enterprise value divided by EBITDA β a debt-adjusted multiple commonly used in M&A and across capital structures.