Value Investing with Business Ratios
Value investing is a concept of buying and selling stocks based on business fundamentals and not as a reaction to news or market trends. It is a well-accepted principle that often the market overreacts to news causing stocks to plummet in price or escalate in value. Value investors ignore this and use sound business fundamentals to trade stock. Much of historical wealth accumulation is based in value investments. There are no short-cuts or sudden actions taken by value investors. All decisions are derived by business analytics and trendlines.
This book walks the reader through the five major groups of business ratios. Each group’s individual ratios are explored in detail including illustrations, examples and formulas.
The final section illustrates how to create a decision model.