Generally speaking, the lower the ratio, the better chance the company is undervalued - it basically means the company produces a lot of cash flow relative to how much it costs to acquire a share on the open market.
A very high PCFR indicates that a company is trading at a high price relative to the amount of cash flow it produces. Start-up technology companies, for instance, would generally have high PCFRs because they may not produce high levels of cash flow in early stages, but investors may bid up the price in anticipation of future growth.
Unfortunately, having a 529 Plan may affect your child’s eligibility for financial aid in the future
Capital Loss refers to a loss realized when a security is sold for less than it was purchased for. In stock trading...
A fixed income security is one designed to pay interest/coupon payments on a predetermined basis, or a fixed schedule
Consensus is a measure of investor beliefs which are in-line with one another, and can be determined by strong trends
A business with a fast ‘cash conversion cycle’ can efficiently use funds to fulfill the different needs of the business
The abnormal earnings valuation method is one in which the future cash flows of a business are given significant weight
The direct cost of materials and labor are a good example of variable costs that will fluctuate with production levels
Investment banks often serve as intermediaries that underwrite a new issue of stock and help to distribute it
The Rectangle Bottom pattern forms when a currency pair price is stuck in a range bound motion, between support/resistance levels
The Symmetrical Triangle Bottom pattern forms when a currency pair price fails to retest a high or a low and forms two trends