P/E Conundrum

A situation where the price to earnings ratio seems to not fairly price an asset.

Course Lectures

• Price and Market Capitalization

  Salman Khan

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  Introduction to price and market capitalization.

• Introduction to the Income Statement

  Salman Khan

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  The income statement, revenue, gross profit, operating profit, net income, ROA and ROE.

• Earnings and EPS

  Salman Khan

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  Earnings, EPS (earnings per share) and how they relate to the income statement and balance sheet.

• Introduction to the Price-to-Earnings (PE) Ratio

  Salman Khan

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  Price to Earnings Ration (or P/E ratio).

• P/E Discussion

  Salman Khan

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  Discussion of the price-to-earnings ratio.

• ROA Discussion 1

  Salman Khan

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  A discussion of the various ways to measure return on assets.

• ROA Discussion 2

  Salman Khan

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  More on the return on asset discussion.

• Depreciation

  Salman Khan

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  Depreciation a capital asset.

• Amoritzation

  Salman Khan

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  Introduction to amortization.

• P/E Conundrum

  Salman Khan

  Playing

  A situation where the price to earnings ratio seems to not fairly price an asset.

• Enterprise Value

  Salman Khan

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  Solving the P/E conundrum by looking at a different valuation metric (enterprise value).

• EBITDA

  Salman Khan

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  Review of Enterprise Value and comparing it to EBITDA.