Fundamental Analysis Videos

The speaker discusses how to calculate the retained earnings of a company who has made an acquisition.  The simple way to determine this is to take the RE balance of the parent company and add the difference of the prior period retained earnings balance and the current period retained earnings balance.&nbsp

The speaker discusses the definition of the weighted average cost of capital (WACC).  He then covers how the WACC is calculated and mentions that it represents a blended cost of capital from all sources of funds; bonds

The speaker does a quick overview on the differences between stock price and market capitalization.  Stock price is not an accurate measure of a companies size, market cap is.  A stock might be priced very high but there may

This is a very quick video on the defintion of market capitalization. The speaker discusses how to perform the calculation and then talks through the different groups of market cap; large cap, mid cap, and small cap.

The video provides an explanation of what market cap is and how to calculate it.  Market capitalization can be calculated by multiplying the number of shares outstanding by the current price of the stock.  There are three main market cap groups; large cap, mid cap, and small cap.  Large cap stocks hav

Steve Forbes discusses how he believes that mark to market accounting has destoyed the banking and insurance industries and suggests that it should be suspended immediately.  When this happens, the market will move higher substantially. 

The speaker covers the differences between two accounting techniques, mark to model and mark to market.  The mark to model technique of accounting values securities based on a financial model that has been created.  Conversely, the mark to market technique for accounting values securites on a regular basis based

The speaker provides an overview of liquidity ratios.  They determine how agile a company is as far as cash flow is concerned.  She discusses the current ratio and quick ratio and talks through each ratio in detail.

The speaker provides a basic overview of many of the key financial ratios that are used for fundamental analysis of a company.  He covers the debt/equity ratio, return on assets, PEG, quick ratio, P/E ratio,

The video discusses two key ratios which can help you understand how a company is doing per share of leverage that has been taken.  Earnings per share, or EPS, is important in understanding how much a company is making off each share they have issued.  A high EPS can indicate that a company should be paying a

The speaker covers the concepts of earnings per share and diluted earnings per share.  He talks through how to calculate the EPS; it is Net Income divided by Shares Outstanding.  Diluted earnings per share is calculated by dividing Net Income by the number of diluted shares outstanding.  If you are manua

The speaker provides a basic overview of the return on equity formula and breaks it down into its components.  Return on equity takes net income and divides it by equity.  This formula breaks down into profit margin times equity turnover

The speaker discusses the return on equity ratio.  This ratio represents the return the company is able to generate on the book value of their equity.  It is defined numerically as earnings divided by book value of the equity from the

The speaker covers the basics of preferred stock.  He discusses the differences between preferred stock, bonds, and common stock.  He suggests that companies sometimes prefer issuing preferred stock due to the fact it doe

The speaker discusses how to calculate the cost of preferred stock.  The video provides the formula and discusses how underwriting costs play a part in pricing.  The cost of preferred stock is equal to the