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Previously:
Absolute valuation: Analysts' secret weapon
Relative valuation: How to compare a stock's worth with its peers?
Stock valuation methods
There are 2 methods for analysts to give enterprises valuations: absolute valuation and relative valuation. How to value listed companies in different industries?
Absolute Valuation
Dividend Discount Model (DDM)
The dividend discount model(DDM) calculates the "true" value of a firm based on the dividends the company pays its shareholders.
DDM is a very effective way of valuing matured blue chip companies in well-developed industries. These companies have to pay a dividend, and the dividend is stable and predictable.
Discounted Cash Flow Model (DCF)
If the company doesn't pay a dividend or its dividend pattern is irregular, then the company should use the discounted cash flow (DCF) model.
DCF is a calculation designed to evaluate a company's current value by projecting its future free cash flows, operating costs, revenues, and growth.
But these values are easier to accurately predict with larger, more firmly established companies that have steady growth histories on which to base these projections, such as utilities, banking, and energy sectors like oil and gas.
Relative Valuation
Price-to-Earnings Ratio (P/E Ratio)
P/E ratios are used by inves...
Absolute valuation: Analysts' secret weapon
Relative valuation: How to compare a stock's worth with its peers?
Stock valuation methods
There are 2 methods for analysts to give enterprises valuations: absolute valuation and relative valuation. How to value listed companies in different industries?
Absolute Valuation
Dividend Discount Model (DDM)
The dividend discount model(DDM) calculates the "true" value of a firm based on the dividends the company pays its shareholders.
DDM is a very effective way of valuing matured blue chip companies in well-developed industries. These companies have to pay a dividend, and the dividend is stable and predictable.
Discounted Cash Flow Model (DCF)
If the company doesn't pay a dividend or its dividend pattern is irregular, then the company should use the discounted cash flow (DCF) model.
DCF is a calculation designed to evaluate a company's current value by projecting its future free cash flows, operating costs, revenues, and growth.
But these values are easier to accurately predict with larger, more firmly established companies that have steady growth histories on which to base these projections, such as utilities, banking, and energy sectors like oil and gas.
Relative Valuation
Price-to-Earnings Ratio (P/E Ratio)
P/E ratios are used by inves...
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As one of the most popular financial technologies, cryptocurrency is well known by most investors. How exactly cryptocurrency was considered to be the future of the monetary system by its supporters?
Bitcoin was only supported by a handful of enthusiasts at the time it was first introduced to the public in a white paper published under the pseudonym Satoshi Nakamoto back in 2008. However, cryptocurrency is now grown into one of the most popular technological developments in the world. The importance of crypto has developed so far that even Federal Reserve is considering issuing the digital dollar. Federal Reserve Governor Lael Brainard propose a cryptocurrency backed by the central bank in May 2021.
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Bitcoin was only supported by a handful of enthusiasts at the time it was first introduced to the public in a white paper published under the pseudonym Satoshi Nakamoto back in 2008. However, cryptocurrency is now grown into one of the most popular technological developments in the world. The importance of crypto has developed so far that even Federal Reserve is considering issuing the digital dollar. Federal Reserve Governor Lael Brainard propose a cryptocurrency backed by the central bank in May 2021.
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Hi Mooers,
Welcome to moomoo Courses!
These are two new lessons to help you learn about investing.
Top Tips for New Users:
https://live.moomoo.com/course/1343
Investing 101:
https://live.moomoo.com/course/36310
Easy learning at moomoo Courses.
Let's trade smarter!
$S&P 500 Index (.SPX.US)$ $NASDAQ (NASDAQ.US)$ $Netflix (NFLX.US)$ $Amazon (AMZN.US)$ $Meta Platforms (FB.US)$
$Tesla (TSLA.US)$ $Twitter (Delisted) (TWTR.US)$
Welcome to moomoo Courses!
These are two new lessons to help you learn about investing.
Top Tips for New Users:
https://live.moomoo.com/course/1343
Investing 101:
https://live.moomoo.com/course/36310
Easy learning at moomoo Courses.
Let's trade smarter!
$S&P 500 Index (.SPX.US)$ $NASDAQ (NASDAQ.US)$ $Netflix (NFLX.US)$ $Amazon (AMZN.US)$ $Meta Platforms (FB.US)$
$Tesla (TSLA.US)$ $Twitter (Delisted) (TWTR.US)$
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I didn't see Any of the free stocks I was supposed to get and can't see how to claim them. I also can't clearly see the quantity of the stock I own unless I pretend I'm going to sell a and then it says how many available to sell.
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What is Inflation?
Inflation measures the rate at which the price levels of goods and services in the economy increase over time. It is the decrease in purchasing power of a given currency over time, as more money is needed to buy the same product compared to the past.
However, price levels of goods and services can also go down. It is called deflation.
When deflation happens, the overall price levels of goods and services decrease over time. It increa...
Inflation measures the rate at which the price levels of goods and services in the economy increase over time. It is the decrease in purchasing power of a given currency over time, as more money is needed to buy the same product compared to the past.
However, price levels of goods and services can also go down. It is called deflation.
When deflation happens, the overall price levels of goods and services decrease over time. It increa...
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I put $600 in my account that was marketed as fee free and now my $34 net worth account it has been charged over $500 in fees? confusing to me. new to moomoo. I’m in the U.S. so it still charges fees? where can I see what I have purchased?
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Where can I learn the basics course on trading and investing here? How to gain access.
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There are many technical analysts’ uses as a chart reading. Some investors or traders uses a combination of TA and FA to time when to buy or sell a stock.
Today let discuss a popular but simple technical analysis tool – The moving average to assists us to help to when to enter the stock.
The moving average (MA) is a simple technical analysis tool that smooths out stocks price information by creating a constantly updated average price on the stock chart. . The average is taken over a specific period of time, like 5 days, 10 days, 20 days etc.
For further understanding the moving average, one may look up at moo moo trading course and look up for moving average. They have pretty good write up how to use apply the technique and you get to learn for FREE.
Some investors using the MA as a trend following method. One might heard before- The Trend is your friend in trading community. Meaning, don’t go against the trend when purchasing /selling a stock. You have lesser possibilities of wining for the trade.
So in here, we can use MA to determine if the stock is uptrend or down trend before one decide if to consider more in-depth studying of the stock before purchase/sell the stock
Let look at one example for case study. It is not a recommendation for buy or sell. Just explore how one can use the MA for buy or selling stock using MA as trending guide .
Let look at BAB...
Today let discuss a popular but simple technical analysis tool – The moving average to assists us to help to when to enter the stock.
The moving average (MA) is a simple technical analysis tool that smooths out stocks price information by creating a constantly updated average price on the stock chart. . The average is taken over a specific period of time, like 5 days, 10 days, 20 days etc.
For further understanding the moving average, one may look up at moo moo trading course and look up for moving average. They have pretty good write up how to use apply the technique and you get to learn for FREE.
Some investors using the MA as a trend following method. One might heard before- The Trend is your friend in trading community. Meaning, don’t go against the trend when purchasing /selling a stock. You have lesser possibilities of wining for the trade.
So in here, we can use MA to determine if the stock is uptrend or down trend before one decide if to consider more in-depth studying of the stock before purchase/sell the stock
Let look at one example for case study. It is not a recommendation for buy or sell. Just explore how one can use the MA for buy or selling stock using MA as trending guide .
Let look at BAB...
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$Sea (SE.US)$ - Good entry point now after the correction .. invest for long term
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annabelyeoo : .
Goldhill : Nice
Ben6642 : Awesome
MurrayDavid : Yuh
102473109 : Helpful
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