Stock Multiples: How to Tell When a Stock is Cheap/Expensive

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Title	:	Stock Multiples: How to Tell When a Stock is Cheap/Expensive
Lasting	:	9.47
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Happy Friday everyone! Have you ever used multiples before when making an investment decision? Which ones do you tend to use? Let me know!
Comment from : The Plain Bagel

I think you need to redue this video with the current Bidenflation going on I tired your method and lately it doesn't make sense Can you answer what Yellen calls inflation "contained" when it keeps raising uncontained?
Comment from : phil G

On what planet is pork cheaper than chicken, Richard? 🤣
Comment from : Matthew Heath

Thanks for another great video Is the value that's reported on earnings day an EPS value? And if so, why does it seem to be different from EPS when I compare them?
Comment from : neuvocastezero 1

God bless you
Comment from : White Rider

At least you figured it out with comments long term
Comment from : Artem Kovalyov

I recently graduated about a month ago from college with a degree in finance I wanted to ego over my course material and came across this video This is EXACTLY as it was taught to me in uni Great video sir Thank u
Comment from : VarietyG4MER

It's really stuff I already know but it's still very nice to have it repeated so coherently Thanks
Comment from : Bob

Great advice as usual
Comment from : Bob

Just a little thank you comment for all the amazing work you do, your channel has truly been a help in explaining core concepts!
Comment from : giacomo bauer

Sorry, this is really bad advice Valuing a business based on ratios in comparison to other similar businesses tell you nothing about the actual value of a business This traps you into looking at stock price rather than what the business is actually worth Remember, you're buying a piece of a business The goal of every business is to generate cash for it's owners The value of a business is how much cash it can generate for you (it's owner) throughout it's lifetime discounted back to present day value Free cash flow, the money that is generated free and clear by a business, is the number you want to look at Learn the discounted cash flow formula and you'll know the real value of a business
Comment from : phyzix

This knowledge is still very relevant to this day
Comment from : Nuclear Dog

So there is no right way, it’s literally just a guess game after all
Comment from : Danny Mexia

nice simple and easy to digest
Comment from : Ibraheem Ali

Thanks for making it clear that P/E ratios aren't everything I'm a new investor and you explain this so well! Thanks for the vid and ez subscribe :D
Comment from : KuyaDexStar

One thing I’d add to your analysis —> P/E is extremely impacted by leverage, taxes and, on the contrary, does not reflect how efficient a company is with its cash cycle through NWC nor does it include its regular CapEx brbrI know it’s probably too complicated for a non-financially literate individual to compute the FCF of a stock but I would at least combine a P/E multiple to its EBIT / EBITDA multiples or even Revenue to see how overvalued a stock is compared to its peer group
Comment from : Orthodoxe Deter

Just ask me!
Comment from : Bruno Heggli

I’d rather buy a great company at a fair price than a fair company at a great price- Warren Buffett 🐐
Comment from : HoseG

I prefer to buy high sell low I can do it a lot more consistently and I like consistency in my life
Comment from : Ioyn Tilnt

It's hard to listen to a guy who can't be bothered to iron his shirt
Comment from : Jacob Hower

"Chasing low multiples without an understanding of a company's core business and future prospects may leave you with something called a value trap, a stock that looks cheap compared to its historical prices, but continues to fall even further because of the deterioration in the firm's fundamentals"
Comment from : Hanny J

Is it better to buy a lower PE ratio or higher?
Comment from : Joseph Wall

Best video I've seen about this, thanks so much! 👍
Comment from : K LL

so teslas pe ratio of 77 is expensive, but why is everyone saying its not?
Comment from : TeslaBull

I tell you, Nay: but, except ye repent, ye shall all likewise perish (Luke 13:5)brHave mercy upon me, O God, according to thy lovingkindness: according unto the multitude of thy tender mercies blot out my transgressions Wash me throughly from mine iniquity, and cleanse me from my sin For I acknowledge my transgressions: and my sin is ever before me Against thee, thee only, have I sinned, and done this evil in thy sight: that thou mightest be justified when thou speakest, and be clear when thou judgest (Psalms 51:1-4)
Comment from : Joey Miller

Your videos are really educational!
Comment from : Lily

Great video
Comment from : Carlo Rossi

I like the presentation style
Comment from : Euan Cheyne

You are confusing more than clearing man
Comment from : sigma R

The thing that bothers me about this video and the majority of one's out there is who do they believe their talking too What I mean is anyone involved in this probably already know this, shame on them if they don't, and probably not really watching for information, so the only ones left would be like me who don't know this or understand this so why do they do videos like this and use all the big words that nobody understands and speaks real fast?? This it seems is a video that was made by someone that someone hires to make videos so they can get their youtube channel monetized to earn money There's a good chance this guy on video has no idea what he's saying, he's just reading from a script and pretending he knowledgeable but really isnt
Comment from : Trying to learn

I guess "Dewey Defeats Truman" was a forward looking statement
Comment from : icu too

What is the multiple when earnings is negative? I've often heard of stocks trading at 10x earnings, and yet, the company isn't profitable yet
Comment from : Vicki B

Lol wtffff nah you missed some key information in this goof ball
Comment from : obama sossa

Instructions unclear, bought livestock futures
Comment from : Chris Huynh

If all your stocks go down, don’t buy , but short yourself and your losses will become your winners
Comment from : Miguel Sandoval

The important part is to always do your research so you can lose your money like you know what you're doing
Comment from : Bastián Girardi

Can you do a video on REITs
Comment from : ashleyj722

This is too complex for me
Comment from : Eneij Pikel

Very informative!
Comment from : Harindu

wow, everything is contradicting everything
Comment from : Ajinkya Chinchole

I love these videos!
Comment from : Wilko JANSEN VAN RENSBURG

I am cashing up I suspect inflation will be out of control when interest rates start to rise The mob will hide under the bed because they will have lost a lot
Comment from : Snoopy Dunworkin

Hi, I am Leo from China and we can promote your financial video to China Can I get a video authorization from you?
Comment from : 李奥

losers eat meat
Comment from : your mom

great
Comment from : robert cliffort

This is bad advice All it might tell you is if you might be in a bubble
Comment from : Martin Luther King Jr

Bra I learned more about P/E ratio these last nine minutes the past two years 😂great explanation
Comment from : Leonardo Castillo

Just didn't understand!!!
Comment from : Aisha Khan

Thank you 🦾
Comment from : Nicholas Sheppard

I’ve been investing for the past 6 months now, like VOO, Coca-Cola, VT, so far But I want to find more individual stocks and I’m struggling with the intrinsic value but I’ll get it Thanks for the video
Comment from : LCM LCM

Very helpful! Thank you!
Comment from : pongop

I love the emphasis that the P/E ratio is really only useful with more context The P/E ratio may be higher or lower than competitors for a GOOD reason, and we have to take the initiative to find out why!
Comment from : Wyatt Simkins

I would really love it if you would start a podcast If you were down to do something like that maybe try a poll to see if viewers are interested!
Comment from : Akaashi 741

It’s easier to make money now, investors should make more practical moves this coming year and seek guidance where needed since the future is unknown Stocks with solid operational performance and financial strength, should be considered
Comment from : Jack Wyatt

yeessss
Comment from : Raph S

Video sucks
Comment from : letsdoit

Actually laughed out loud, which is a first for a fundamental analysis video 👍
Comment from : Nicholas Richardson

Great videos, man! keep up the momentum A question: is ENPH (Enphase Energy Inc) overvalued at the moment?
Comment from : Alireza Asadi

Use 5 year trend of EPS Better yet, free cash flow / per share trend over 5 years when screening
Comment from : Francois R Bosse, CMC

cool vid
Comment from : avelrage

7:46 Deteyiorated
Comment from : First Last

This one has not aged well Welcome to 2021, we're trading at 500 forward P/EbrAll the math just turns out to be a smokescreen for what the market is and always has been: A graph of rich people's feelings
Comment from : Fortus Victus

4:20 hey, could someone explain to me in why paying more for less profit is a good outcome? I don't quite understand
Comment from : Kurang Hoki

DCF is best way
Comment from : Viet Nguyen

Im going to check my steak next time
Comment from : Sky Net

Everyone know that "Buy high, sell low and repeat until you rich" is the right quote Lol
Comment from : GE Morp

While I’ve known about the P/E Ratio, I never quite understood it till now Your analogy about meat prices is a perfect explanation Thank you
Comment from : Robb

Not gonna lie, I'm craving a plain bagel suddenly
Comment from : Sean C

i learned a lot from this, thank you!
Comment from : rachel s

Woah I found actually good investment advice on YouTube! Subscribed!
Comment from : nagol1000

Could you do a video on Asset Management companies, and how to invest in them, please? brOften the online stock analysis is difficult because they don't tell us about its multiples, no analyst coverage/opinion, or what assets are even being managed I like that a lot of them attempt to produce income for the investor, but its hard for us lay folk to evaluate them
Comment from : ghost L

THANK YOU FOR DOING WHAT YOU DO
Comment from : Dasha B

I still don't understand what a 10x multiple meanswtf lol what is that number? I understand the math but what is the x and multiple for?
Comment from : Jimmy O’Niel

P/E ratio is great for figuring out which stocks have a ton of hype Just check out Tesla's P/E ratio 🤣!
Comment from : methos1999

Great info, thanks man
Comment from : ANH ANH1

In my case the P/E on google is not showing up?!
Comment from : Tillmann Brodbeck

Tiktok: It's Tesla, BUY BUY BUY!
Comment from : Midi Music Forever

In other words it depends…
Comment from : csu111

Example: Tesla vs Nio vs Xpeng 🤓
Comment from : John

each tim you get my like;) im cheap with my likes you know
Comment from : Berlin

Company’s with negative net income but are yet bullish: Am I a joke to you?
Comment from : Eclipse

Don't keep mixing profit and earning They are different and mean differentbrP/E is comparing price to earning and not profit
Comment from : B€£ dPatriot

Please make a videos on all Warren 's quotations
Comment from : Kotamraju Prasad

But generally, the P/E ratio represents how much people are over-paying for a stock
Comment from : Richard Salley

Really great explainer this one nearly 3 years later :)
Comment from : Toby Newbatt

aaaand im lost thanx anyways
Comment from : ill du it myself

i dont get it lol
Comment from : BL-DUB & FRIENDS!

Thanks for your excellent explanation on this matter I look at this video many times and I start to buy stocks Have a great day
Comment from : Jose Perez

At the end if you listen to all this garbage I can some it up by get a dart board throw the dart and hope for the best
Comment from : Mike

Shut UP! Bunch a BS keep it simple Mr talk in circles constantly, trying to sound like he just discovered time travel
Comment from : Mike

This is cool and all if you can calculate the forward p/e yourself but never listen to “analysts” predictions You don’t know who they work for
Comment from : Kevin Downes

Buy index funds Individual stocks are just gambling
Comment from : L D

Honestly I feel it goes beyond how to tell if a stock is cheap or expensive, other things come into play before placing a trade Pattern recognition, stock picking, when to buy or sell, entry and exit points? A few must knows for every newbie before getting around to placing a trade, Don't rush the process I started profiting from the market when I discovered a better and more effective way to trade and make money I'll be on to seven figures by years end Kudos
Comment from : Axel Martins