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Search Results for "net profit margin"
There were 20 articles found for your query:
  1. What is the purpose of the Scenario Analysis? What is the purpose of the Scenario Analysis?
    ...sis, then it is time to see if it is selling at a profitable price. We are looking for those compa...give a reasonable return even under a substantial margin of safety. Then, if things turn out a littl...

  2. What is the DuPont analysis of return on equity?What is the DuPont analysis of return on equity?
    ... Operating efficiency measured by net profit margin (NPM) or net ea...

  3. What is the purpose of the Safety button in Conscious Investor and the Conscious Investor Wizard?What is the purpose of the Safety button in Conscious Investor and the Conscious Investor Wizard?
    ...ant words in investing are “margin of safety.” But up t...ch for great companies selling at profitable prices. Prudent inve...nce for this to happen either the net profit margin would have to i...

  4. What is the significance of the high/low Price to Earnings PE charts?What is the significance of the high/low Price to Earnings PE charts?
    ...T/STRETD calculations in the Scenario Analysis. It can help you formulate a sensible and reasonable margin of safety.

  5. Why do STRET and STRETD sometimes increase and sometimes decrease when the investment period is increased?Why do STRET and STRETD sometimes increase and sometimes decrease when the investment period is increased?
    ... usually the current PE ratio will be higher than the forecast PE ratio since we want to build in a margin of safety. In this case, the return on the investment as calculated by STRET will be less tha...

  6. What are STRET and STRETD? How do you calculate them?What are STRET and STRETD? How do you calculate them?
    ...ven calculate the expected return under different margins of safety. The output of STRET and STRET...TRETD is an estimate of the annualized percentage profit return or rate of return from owning the st...

  7. What are the main advantages of the STRET/STRETD approach in Conscious Investor?What are the main advantages of the STRET/STRETD approach in Conscious Investor?
    ... namely a calculation of the total return that you will get, with an investment under the investors margin of safety. (2) The formulas are precise. For example, if the output of STRETD is 15% over t...

  8. What are TARG and TARGD? What are TARG and TARGD?
    ...with STRET and STRETD. The outputs of STRET and STRETD are an estimate of the annualized percentage profit return or rate of return from owning the stock. For example, if the output was 8 percent, the...

  9. Why do I often see different PE ratios on different sites and in different publications? Why do I often see different PE ratios on different sites and in different publications?
    ...ing standards of the reporting company. This is why it is vitally important to always have a “margin of safety.”

  10. What if the price has not dropped to my target price? What if the price has not dropped to my target price?
    ...his effort into analyzing a company, worked out a margin of safety, and then calculated a target pri...of the stock, before I knew it, I was on the internet buying shares in a company that I barely knew ...

  11. What should I do when the earnings figures take a drop?What should I do when the earnings figures take a drop?
    ...es and products of the company. If at the end of this you are still unsure, put in an even bigger margin of safety in your estimates. Or, even better, move on to another company.

  12. Do you need a high IQ to be a successful investor?Do you need a high IQ to be a successful investor?
    ...hen you find these companies, use Conscious Investor to calculate a fair price for them including a margin of safety. The final step is to take your time until everything meets your requirements. Yo...

  13. With so much terrorism in the world, perhaps this is not the time to invest in the stock market? With so much terrorism in the world, perhaps this is not the time to invest in the stock market?
    ... of major shocks is sure to occur in the next 30 years. We will neither try to predict these nor to profit from them. If we can identify businesses similar to those we have purchased in the past, exte...

  14. Is it better to invest in stocks with a low PE Ratio or a high PE ratio?Is it better to invest in stocks with a low PE Ratio or a high PE ratio?
    ...ns, for example, when doing a STRET or STRETD calculation in Conscious Investor to include a larger margin of safety.

  15. What is a conscious investor?What is a conscious investor?
    ...rices, you buy and sell the symbols over the internet or via bodyless voices over the telephone. S...ook for quality businesses with shares selling at profit-making prices. Our system is set up to scan...

  16. What does Warren Buffett say about economic moats? What does Warren Buffett say about economic moats?
    ...from intruders, an economic moat around a company keeps the company safe from competitors and other profit-draining forces. The following are some of the remarks that Warren Buffett had made about e...

  17. Can we trust the earnings figures?Can we trust the earnings figures?
    We can never trust them completely. That's why we have a margin of safety. Firstly, if two accountants prepare the figures they will get different results. Secondly, we have to ask ourselves what i...

  18. What would you say is the key secret of Buffett’s methods?What would you say is the key secret of Buffett’s methods?
    ...es into asking for a target price TARGD which will supply at least a 10 percent return under a high margin of safety. Just as for Buffett, this establishes a worst case return with a high level of pro...

  19. What does Warren Buffett think of forecasts by analysts and market commentators? What does Warren Buffett think of forecasts by analysts and market commentators?
    ...n Alan Greenspan were to whisper to me what his monetary policy was going to be over the next two ye...e into account is the company's economic moat and margin of safety.

  20. How should I get started with Conscious Investor? How should I get started with Conscious Investor?
    ...Price to pay for the shares. Also, by forecasting lower earnings or dividend yield, you can apply a margin of safety to your Target Price. Take the time to look through these thoroughly. It is recom...


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