Understanding the EV/2P Ratio

🖨 Print⏱ 3 min readWhen it comes to raw materials, especially for fossil fuels, it’s essential to evaluate existing and potential production capabilities for such companies. Using the EV/2P Ratio is a powerful tool when evaluating fossil fuel-related companies. Defining … Continue reading →

🖨 Print⏱ 3 min readWhile Cash EBITDA isn’t recognized by generally accepted accounting principles (GAAP), it’s a way for company owners and investors to account for deferred revenue during valuation modeling. This financial metric measures a business’ year-over-year change in … Continue reading →

🖨 Print⏱ 3 min readWith 57 percent of public companies offering their workers employee stock purchase plans (ESPPs), according to the National Association of Stock Plan Professionals (NASPP), understanding how qualifying dispositions work is an essential skill. The concept refers … Continue reading →

🖨 Print⏱ 3 min readWhether you are an investor, an owner, or an internal financial analyst, understanding how the equity multiplier works and how to interpret it is a helpful skill. Defining the Equity Multiplier The equity multiplier is a … Continue reading →

🖨 Print⏱ 3 min readAn activity cost driver is anything that causes a company’s variable costs to either reduce or grow. Since measuring an activity cost driver is a way to streamline the administration of managing production costs, it’s an … Continue reading →

🖨 Print⏱ 3 min readWhether it’s an individual investor or a business owner looking to increase their earning power, understanding how accretion works is essential for individual and business investors to make the correct decisions going forward. How Accretion Works … Continue reading →

🖨 Print⏱ 3 min readWhen it comes to evaluating a business, there are many ways to perform a valuation. One way to do so is to use the Q Ratio. Known as Tobin’s Q Ratio or simply the Q Ratio, … Continue reading →