Experienced Level Trading

stock dilution

Understanding Stock Dilution 

Some beginning or intermediate investors are often unaware of what stock dilution is. However, stock dilution can matter a lot. Stock dilution happens when a firm’s action raises the number of outstanding shares and decreases the ownership percentage of existing shareholders. It is relatively common for distressed firms to dilute shares. However, the process has …

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Ebitda ratio

What is a good EV to EBITDA ratio?

It is not a secret that enterprise value (EV) to the earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio varies by industry. However, it is essential to note that the EV/EBITDA for the S&P 500 has typically averaged 11 to 14 over the last few years. EV measures the company’s total value, while EBITDA gauges …

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Market Cap

Company’s market cap and its stock price

What is market capitalization? A company’s worth or its total market value is market capitalization or market cap. We can calculate it by multiplying the company’s stock price by the number of shares outstanding. As we know, the stock price is a relative and proportional value of a company’s worth. Thus, it only represents a …

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