33: How to Pick Stocks to Invest in (Part 2: Profitability and Valuation)

Girl on FIRE

🎙 In part 2 of this series, we’re looking at some of the key ratios you need to be aware of when you’re learning how to pick stocks. We’ll focus on some of the key profitability and valuation ratios like EPS, P/E ratio and return on equity. These help investors determine whether or not a company is a good investment choice for their investing strategy. 🤔

This episode discusses topics like:

🌟 Why looking at the profit line in company financial statements isn’t enough;

🌟 How ratios and benchmarks can change and don’t always give you the full picture; and

🌟 What key profitability and valuation ratios you need to consider when evaluating investment options.

Links from this episode:

Episode transcript and show notes: https://www.papermoneyco.com/gof33

Get your FREE Investing Starter Guide: https://www.papermoneyco.com/startinvesting

How to pick stocks to invest in (Part 1: Understanding financial statements): https://www.papermoneyco.com/gof32

Time codes:

00:00 Hello and Welcome!

02:39 Financial Statement and Analysis

05:35 Valuation Ratio

09:35 Profitability Ratios

12:53 Sponsor - FIRE and Investment Calculator Spreadsheet

14:43 Ratios Contd.

18:14 Big News and Personal Update

26:46 Next Weeks’ Episode

Remember to:

Join our exclusive community by becoming a Patron: https://www.patreon.com/girlonfirepodcast

🤩 Subscribe so you don’t miss any future episodes.

🏆 Rate and review the show on Apple Podcasts: https://www.papermoneyco.com/podcastreview

Podcast reviews are crazy important to the iTunes algorithm. The more reviews we receive, the more likely we’ll be able to get this podcast in front of more people and grow the PMC Squad!

💖 I'd be super grateful for your help in making financial education available to everyone.

The advice shared on Girl on FIRE is general in nature and does not constitute financial advice. The information shared does not consider your individual circumstances. Girl on FIRE exists purely for educational purposes and should not be relied upon to make an investment or financial decision.