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 … [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 … [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, … [Read more]

Easy Way to Understand 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 … [Read more]

Looking for Dividends? Try These 6 Canadian Stocks

Today we go to the north of the border to find some of the best dividend stocks Canada has to offer. Each of these stocks is listed on an American Exchange as well as a Canadian Exchange, and is therefore easily bought and sold by both my US and … [Read more]

Book Value Per Share

What is Book Value per Share Book value per share is simply (Common Stockholder's Equity / Number of Shares of Common Stock) If there are no preferred shares outstanding, Total Stockholder's Equity can be used in place of Common Stockholder's … [Read more]

January 2016 VSG Portfolio and Market Update

January has come and gone this year and the investors have been left behind in a sea of red. For believers in January Effect, this can be foreboding. They say that the month of January is a barometer for how the stock market will perform through … [Read more]

January Effect Definition

The January Effect is named after an observation made in 1942 by banker Sydney Wachtel. He noted that small stocks have tended to outperform the market in the month of January since 1925. The hypothesis rests on the belief that in December stocks … [Read more]