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Valuation Metrics That Will Make You a Better Investor

With these valuation metrics, look beyond price-earnings ratios to get a more nuanced picture. Enterprise value. Earnings before interest and taxes. Free cash flow. Weighted thingamajig foofaraw. Okay, we made up that last one. But there are scores of investing jargon and calculations — many with off-putting acronyms — that investors can use to shed light on a stock’s valuation and outlook. Most investors are familiar with a few basic measures, such as the comparison of a stock’s price to the co ....

Zach Jonson , Yardeni Research , Stack Financial , Free Cash Flow , David Wessels , Michael Arone , Enterprise Value , Interest Rates ,