Which metric should I pay more attention to, EV/EBITDA or P/E?

The price-to-earnings (P/E) ratio is most popular and widely used financial metrics. It has a number of flaws for which the initiative value to EBITDA (EV/EBITDA) ratio compensates. The EV/EBITDA ratio is a financial metric that measures the return that a company makes on its capital investments. The calculation of this ratio can be complex. … Read moreWhich metric should I pay more attention to, EV/EBITDA or P/E?

What tax forms do I need to file for an LLC?

This question appears as a usual concern for those who set up an LLC (or a limited liability company). According to the Internal Revenue Service (IRS), LLC tax filing requirements are based on the company’s classification and number of members. Here’s a rundown of the classifications provided by IRS, and the corresponding tax forms an … Read moreWhat tax forms do I need to file for an LLC?

Stocks Basics: Valuing Stocks

There are two approaches to valuing stock. RATIO-BASED APPROACH INTRINSIC VALUE RATIO-BASED APPROACH: Valuation ratios compares the market value with financial aspects of its performance. It usually includes sales, book value, cash flows. Ratio-based approach is used for valuing stocks. Ratios are easy to calculate and are easy to read. For Example, the ratio that … Read moreStocks Basics: Valuing Stocks