Common Sense and Price to Earnings Ratio

Even the most common price to earnings ratio is not as simple as you think. There is an understandable tendency to put the different valuation...

Enterprise versus Equity Multiples

There are two basic types of multiple that an investor has at his disposal – enterprise and equity multiples. Definitions From the UBS Warburg report: Enterprise multiples...

Greater Fool Theory: What Does It Mean For Investors?

What is the Greater Fool Theory? The Greater Fool Theory is when the price of a good is not determined by its intrinsic value, but rather...