running the numbers

Running the numbers

So, last week I shocked you, revealing to all the world that you, too, are quite the numbers person. Now you’re qualified to join the world’s elite. That’s right… Nobody becomes rich without running the numbers. Think about that for a moment But that’s as bad as the news gets. The good news is: millions of people […]

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Company valuation pulling the trigger

Company Valuation: Pulling the Trigger

Why do you do a company valuation? Just because you’re bored, TV stinks like cheese and you simply can’t think of anything better to do? All valuation exercises aim at one single point: The Decision: buy or not buy. Pass or buy: it’s the destination for all investment journeys. Limits When you want to invest, […]

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investigating stamps.com

Is Stamps.com A Good Investment?

Should you invest in Stamps.com? Earlier on, you learned that there is a little “homework” (or due diligence) you need to do in order to figure out if Stamps.com is a good investment or not. We’ve spent the past few weeks circling the company, just as an example of trying to figure out if its […]

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stamps image

Company Valuation, Common Sense version

There are many techniques people use to arrive at a definitive company valuation. They carry fancy titles like Discounted Cash Flow (DCF) and employ formulas which make your head spin. Funny thing, though: many people do extremely well without even knowing what a DCF is, or whether it comes with fries. You remember the husband in […]

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stamps image

Now You Can Evaluate A Company, Part 2

Okay, last week you saw where I start when trying to evaluate a company to invest in: P/E and growth. The mathies among you no doubt began to wonder: hey, is there a way you can connect those two together? There is. Mr. Lynch brought an obscure ratio to the front page: the PEG ratio (PE-Growth). […]

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