Value the Stock

Key Financial Ratios Every Investor Should Know

The key financial ratios every investor should know — P/E, ROE, margins, debt and cash-flow yields — explained simply with how to use them to value stocks.

Valuation ratios — “Is it cheap or expensive?”

Profitability ratios — “Is it a good business?”

Financial-health ratios — “Is it safe?”

Putting the ratios together

Try it on a stock: Apple Inc. (AAPL) · MICROSOFT CORP (MSFT) · Alphabet Inc. (GOOGL) · NVIDIA CORP (NVDA) · AMAZON COM INC (AMZN) · Tesla, Inc. (TSLA) · Meta Platforms, Inc. (META)

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