Further down on the Reuters page we find the growth rates. We continue with the example of Mercado Libre. These are the sales and earnings per share (eps) data for different periods year on year, and compared to the industry and sector. It is precisely the data that needs to be compared because ratios alone … Read more
Then on the Reuters page we find the Valuation Ratios as shown in the image: Beta Beta is a measure of the volatility of a stock (or any asset) with respect to how variable the market is. The beta coefficient is equal to 1.0 when it is in line with the market. Otherwise, higher values … Read more
The first thing we find when we arrive at the page are the revenues and eps as in the following image: In this example we see the presentation of revenue and earnings data for Mercado Libre in different periods compared to the years 2017 and 2018. According to the chart we can see that the … Read more
What is a ratio? A ratio is an accounting or financial unit of measurement and comparison, by means of which we can analyse the current or past state of a company. That is, it is a number that by itself does not say much, but compared to previous ones it allows us to determine the … Read more
Important aspects of a company for fundamental analysis: It is necessary, especially when investing for the long term, to carry out an in-depth analysis of the company or companies in which we want to invest. In other words, those in which we are interested in investing if our analysis so determines. There are very important … Read more
Finally, for our analysis, we find the financial strength What is a ratio that measures financial strength Quick ratio This is known as the “acid test” as it measures the liquidity of a company and the capacity it would have to use its assets to pay its short term debts. It tells us in the … Read more