P/E Ratio In this video, Chuck Carnevale, Co-Founder of FAST Graphs, a.k.a. Mr. Valuation will explain the concept of a P/E ratio as a valuation reference using FAST Graphs for evaluating stock prices. Chuck will demonstrate how the P/E ratio can help determine if a stock is trading at a fair valuation or not, and …
P/E Ratio
FAST Graphs Tutorial: The Normal P/E Ratio (The Blue Line) – What It Is And How It Works
Normal P/E Ratio – The Blue Line We get a lot of questions about what we call Normal P/E Ratio on a FAST Graph. People want to know how it is calculated, what it means, and how to utilize it to make better long-term investment decisions. In this video we will explain how the Normal …
What Is The P/E Ratio and How Is It Used For Investing
Investing is a numbers game, and at the beginning it can be very daunting. One wrong move and a great deal could be lost in the blink of an eye, so knowing how to avoid disaster is paramount to success. However, that is easier said than done. Having the proper tools and knowledge is the …
How FAST Graphs Draws Fair Valuation Reference Lines
Introduction This video is offered to clarify the misconception of how FAST Graphs applies its fair valuation reference lines on its graphs. A comment on my recent video suggested that the 15 P/E ratio that is very commonly seen on most of our graphs is arbitrary and simply fictitiously applied to as the comment suggested …
Why a 15 P/E Ratio Represents Fair Value for Most (not all) Companies: FedEx Part 2
Introduction One of my favorite Warren Buffett quotes is “investing is most intelligent when it is most businesslike.” The reason this quote resonates so much with me is because I believe it represents the essence of value investing. To me, value investing is about positioning yourself as a shareholder/owner/partner in a wonderful business that you …
FAST Graphs Helpful Hints & Tips: Understanding the P/E Ratio Calculation for Customers Bancorp (NYSE:CUBI)
We were recently asked the following excellent question from a subscriber and feel it provided the opportunity to share some helpful hints and insights into how to best utilize FAST Graphs: “Usually, I think I understand that the orange P/E ratio line is an average of some type and it usually intuitively makes sense. However, …