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10x Investing
@10xinvesting

150,670 followers

70% of my portfolio is in index funds/ ETFs, which is why my motto is DCA and chill. But, I also like individual stocks. Let me teach you how to value a stock - There's tons of ways to value stocks, but let's stick with these four important ratios: 1. Price to Earnings (P/E) 2. Price to Sales (P/S) 3. Price to Growth (PEG) 4. Debt to Equity (D/E) - The P/E ratio tells you how much you are paying for each dollar of earnings. To figure out the P/E of a stock, you divide the share price by the earnings per share (EPS). A good P/E ratio is typically below 20. - The P/S ratio tells you how much you are paying for each dollar of sales. To figure out the P/S of a stock, you divide the share price by the sales per share.A good P/S ratio is typically between 1 and 2. - The PEG ratio tells you how much you are paying for each dollar of earnings, while also factoring in earnings growth. To figure out the PEG of a stock, you divide the P/E by the earnings growth rate. A good PEG ratio is typically below 1. - The D/E ratio tells you how well a company is leveraging its debt to generate profits for it shareholders. To figure out the D/E of a stock, you divide the total liabilities by the shareholder equity. A good D/E ratio is typically below 1. - What is your favorite ratio? Let me know in the comments! - So, if you want to become wealthy, start by believing that you can do it. Then, take action towards your goals and don't give up. ⁠ ⁠ If you want to take action today, then click the link in my bio! ⁠ 👉🏻 link in bio @10xinvesting 👉🏻 link in bio @10xinvesting 👉🏻 link in bio @10xinvesting - #becomerich #liabilites #assets #stockpicking #buildingafuture #expenses #investing101 #etf #retireearly #financialyfree #wealth #stockmarket #moneymindset #financialfreedom #investment