Thread of Fundamental Analysis concepts explained through bad analogies:
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Market Cap: The sticker price of a company. Like MSRP it is usually higher than the actual 'street' price.
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Net Debt: "Obligation Pressure". Formally defined as short and long term assets - cash & cash equivalents. If I have net debt of 1M, it means I have obligation to make 1M. If I have net debt of -1M (e.g. 1M debt, 2M assets) it means this debt is just for fun/leverage.
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Enterprise Value: Market Cap - Net Debt. "Street Price".
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EBIT & EBITDA: "How much money I'd make if it weren't for this tax bullshit."
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EV/EBITDA: The "Enterprise Multiple". If a company were a spear thrusting into the future this would the length of the spear. E.g. Apple's EM is 26. Mining industry is 7.5, Tesla's is 144.
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P/E , P/S, P/B : Ratio of price to respectively, earnings, sales, book value. For all 3, higher means the market values it more. If you were buying a knight bodyguard these would be the market prices for the knight's sword, shield, and armor.
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Book Value: How much you can sell the goose as meat( vs selling its golden eggs)
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