Are There Dangers in Not Diversifying Your Portfolio?

When it comes to investing, the key for most people to make money is to avoid as much risk as possible. In order to accomplish this, it’s best that all investors decide to diversify their portfolios in all possible ways. However, while it may sound simple, diversification is anything but that. However, by following a… [Read More]

Get 5 Years Worth of Value Investments Case Studies for Free

At Value Stock Guide Premium, we have made over 25 investments in the last 5 years that we have completed a round trip on. This means, these investments were made, and then ultimately we exited the stock in question. I have collected the original research that was part of the recommendation for every round trip… [Read More]

7 Small Cap Stocks to Buy in the Service Sector

With the market so volatile and the investors generally heading for the exits, many good companies can be acquired today for cheap. The following 7 stocks appear to be good buys right now with terrific valuations and solid history of earnings growth. In a few cases, the undervaluation is extreme due to temporary issues. Each… [Read More]

P/E Ratio Definition

What is P/E Ratio? P/E Ratio is one of the most common valuation metric used to identify stocks attractively priced for investment. As the name implies, the Price/Earnings Ratio is simply the price of the stock divided by the earnings per share as reported by the company. Most commonly, the last 12 months of eps… [Read More]

Interest Coverage

Interest coverage ratio measures a company’s ability to pay the interest on its outstanding debt. A high ratio means that the company will have no trouble paying the interest expense, while a low ratio indicates a potential default on the loan payments. Lenders and creditors use this ratio to determine if they would be willing… [Read More]

Do You Make These Mistakes With P/E and Other Ratios?

Anyone who has ever tried to value a company has used some rules of thumb when conducting the financial ratio analysis. For me personally, these form a base upon which various screens and shortlists are structured. Looking for undervalued stocks can at times feel link looking for a needle in a haystack, and these rules… [Read More]

Financial Ratios

Financial ratios allow an analyst to quickly analyze a business and its operations and understand the financial situation of a company. These ratios answer many different kinds of questions that can be asked about a business performance. Normally, many of these ratios need to be understood in the context of a benchmark, such as, past… [Read More]

Easy Way to Understand What is Value Investing

Value investing as an investment practice was popularized by Benjamin Graham and David Dodd in their 1934 classic treatise “Security Analysis”. The idea itself rests on a very simple premise: Stock prices tend to differ from the intrinsic value of the company in the short term. In the long term however, the stock price and… [Read More]