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Articles on value investing fundamentals, newest first.
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How Are Insurance Companies Valued?
Learn how insurance companies are valued: price-to-book, ROE, the combined ratio, float, Solvency II and embedded value, with a worked example.
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What Is EBITDA? Formula, Example & Limitations
Learn what EBITDA means, how to calculate it, why investors use it, and where it misleads, including the IFRS 16 effect on European companies.
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What Is Dividend Yield? Formula, Example & What Counts as Good
How dividend yield is calculated, a worked example, why a high yield isn't automatically a good sign, and how it connects to dividend reinvestment.
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What Does Dividend Reinvestment Mean? DRIP Explained
What dividend reinvestment is, how a DRIP works, a worked example over time, and when taking the cash instead might make more sense.
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Compound Interest in Investing: What It Is and Why It Matters
How compounding works over time, and why it rewards patience and reinvestment more than almost anything else in investing.
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What Is Margin of Safety? Formula and How to Use It
How margin of safety is calculated from intrinsic value, and why the percentage you choose matters more than the formula.
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How to Read a Cash Flow Statement
A plain-language walkthrough of the three sections of a cash flow statement and how to read them together.
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Financing Cash Flow: What It Is and How to Read It
What financing cash flow includes and what dividends, buybacks and debt changes actually tell you.
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Investing Cash Flow: What It Is and Why Negative Isn't Bad
What the investing section of the cash flow statement includes, and why negative investing cash flow is often a good sign.
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Operating Cash Flow: Formula, Example & How It's Built From Net Income
How operating cash flow is calculated from net income with the indirect method, and what it shows that net income alone cannot.
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Free Cash Flow (FCF): Formula, Example & Why It's Harder to Fake
How free cash flow is calculated from operating cash flow and CapEx, and why it's harder to manipulate than net income.
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Debt-to-Equity Ratio: Formula, Example & What Counts as Good
How the debt-to-equity ratio is calculated and why the right level depends heavily on the industry.
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Return on Equity (ROE): Formula, Example & What Counts as Good
How ROE is calculated, what counts as good, and why leverage and buybacks can make the number misleading.
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What Is the P/B Ratio? Formula, Example & When It Works
How the P/B ratio is calculated, what a low or high P/B means, and why it works better for some industries than others.
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What Is the P/E Ratio? Formula, Example & What's "Good"
How the P/E ratio is calculated, what a high or low P/E means, and why comparing across industries can mislead you.
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What Is a Growth Rate? Historical vs Expected Growth
How to calculate historical growth, why expected growth is a forecast, and how to choose a rate for valuation.
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What Is Shareholder Equity? Formula and Explanation
How shareholder equity is calculated from the balance sheet and why it drives book value per share.
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What Is the AAA Corporate Bond Yield?
What a bond yield and a AAA rating mean, why Graham used it, and where to find the current figure.
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What Is Intrinsic Value? Formula and Calculator
Graham's intrinsic value formula, a worked example, and why the growth rate matters most.
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Book Value Per Share (BVPS): What It Is and How to Calculate It
How BVPS is calculated, what it's really measuring, and the accounting quirks that can distort it.
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Earnings Per Share (EPS): What It Is and How to Calculate It
How EPS is calculated, trailing vs forward EPS, and where the number can mislead you.
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The Graham Number: What It Is and How to Calculate It
What the formula measures, a worked example, and a free calculator.
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