The Monk Way - Stock Market Videos's video: The Fastest Way To Value A Stock How To Value Stocks

❤️ Monk's Market Mastery: http://bit.ly/MonkMR ❤️ 💚 Monk's Youtube Mastery: http://bit.ly/MonkYT 💚 💙 Webull Investing App: http://bit.ly/MonkWE 💙 The fastest way to value stocks. We can use this simple guide to find the best value stocks to invest in. Using 4 simple ratios, we can have quick look at a stock's value in the stock market. The price of a stock doesn't tell us the value of that stock. A stock worth $1000 might be making $1000 a year, while a cheaper stock of $15 might only make $1 a year, the $1000 stock is a much better value even if it's more expensive to buy. This is why ratios are needed, we compare the stock price to how much the company is earning. The first and most important ratio is the price to earnings ratio or p/e ratio, this tells us how much profit a company is earning. Dividing a stock's price by their earnings per share gives us the p/e ratio. Comparing Facebook stock, Amazon stock, Apple stock, Netflix stock, and Google stock tells us Apple stocks has the best price to earnings ratio, meaning higher earnings than the rest. The next ratio is the price to sales ratio or p/s ratio. This compares a stock's price to the revenue they earned. Revenue is money earned before any costs of making that money. Look at the 5 stocks, Apple stock and Amazon stock has nice p/s ratios. The next ratio is price to book ratio or p/b ratio, telling us how much money the company has in their books. Google is the best at having more money in their books. The last ratio is the debt to equity ratio, or d/e ratio, telling us how much debt a company has. Facebook stock and Google stock has the least amount of debt. With these 4 basic stock ratios, we can find the best value stock.