Stock Price (12 Months)
Stock prices move like a rollercoaster — short drops are normal!
Company Fundamentals
A sustainable company earns more than it spends.
Price-to-Earnings (P/E) Ratio
What is P/E Ratio?
Think of it like this:
If you bought the whole company today, how many years would it take to earn back your money?
How it works:
• Take the stock price (what you pay for 1 share)
• Divide by earnings per share (profit per share in the last 12 months)
• That's your P/E ratio!
What it means:
• P/E of 15 = It takes 15 years to earn back your investment
• Lower P/E = Cheaper stock (might be on sale!)
• Higher P/E = More expensive (people think it will grow fast)
Think of it like this:
If you bought the whole company today, how many years would it take to earn back your money?
How it works:
• Take the stock price (what you pay for 1 share)
• Divide by earnings per share (profit per share in the last 12 months)
• That's your P/E ratio!
What it means:
• P/E of 15 = It takes 15 years to earn back your investment
• Lower P/E = Cheaper stock (might be on sale!)
• Higher P/E = More expensive (people think it will grow fast)
When this line is high, investors are paying more for each $1 of profit. When it's low, the stock might be 'on sale.'
Return on Equity (ROE)
What is Return on Equity (ROE)?
Equity is the money that belongs to the owners of the company. ROE shows how much profit the company made with that owner's money. If ROE is 15%, that means for every $100 the owners put in, the company made $15 profit.
Equity is the money that belongs to the owners of the company. ROE shows how much profit the company made with that owner's money. If ROE is 15%, that means for every $100 the owners put in, the company made $15 profit.
This shows how good the company is at turning its money into more money.