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Valuation

Price is what you pay; value is what you get. The ratios and models analysts use to tell the difference.

The P/E Ratio Explained: What It Tells You and What It Hides

Trailing vs. forward P/E, earnings yield, the PEG ratio, and why a low P/E isn't automatically cheap.

Discounted Cash Flow (DCF), Explained Without the Jargon

Why a dollar next year is worth less than a dollar today, and how analysts turn future cash into a value per share.

Put it to work

P/E & simple DCF calculator
Price-to-earnings, earnings yield, and a two-stage discounted cash flow estimate.Free download: Valuation Worksheet
P/E, PEG, free-cash-flow yield and a simple DCF on paper. (PDF)