A stock in your portfolio has fallen 30% since you bought it; is the market telling you something, or is it just better value than before? This is one of the most important questions an investor faces on a regular basis. Averaging down is when an investor buys more stock... Show More
In prior editions, I’ve explained some common, straight-forward terms. Today, we take a dive into a more complex idea: Weighted Average Cost of Capital (WACC). While it may sound slightly esoteric, it’s potentially one of the most important concepts both in investing and corporate finance. Investment decisions are made on... Show More
Net profit after tax (NPAT), adjusted earnings, normalised earnings, pro-forma earnings, earnings per share… With so many different phrases and versions, it’s no wonder some investors struggle to stay on top of it all. In this third edition of Beyond the Jargon, I’ll explain what these differing terms mean, what... Show More
After introducing EBIT last week, in in part two of Beyond the Jargon, I’ll be explaining PE and PEG ratios – likely the most quoted terms in finance. However, despite its wide use, the PE ratio remains a divisive topic. Some deride the PE ratio and its variants as ‘useless... Show More