Investment Guide

Measures how much you are paying for a company relative to its expected long-term earnings. We calculate it as P/E Ratio divided by expected long-term earnings growth. This is essentially the PEG ratio, but the key is that we use long-term expected earnings growth and normalize current earnings with estimates, so the metric becomes less noisy and more useful as a long-term valuation guide. A lower number means you pay less for each percentage point of future growth, which helps you avoid overpaying while still owning profitable, growing businesses.

Measures how much long-term debt a company uses relative to its shareholders' equity. It is calculated as long-term debt divided by total equity. Companies with lower leverage are more resilient in downturns and can reinvest more of their earnings into growth instead of paying interest.

Measures short-term price strength and investor sentiment using the Relative Strength Index (RSI). It is calculated from recent price changes and ranges from 0 to 100. It helps spot stocks that may be overhyped, so you avoid buying into euphoria — but it should never be the sole reason to buy or sell.

Measures how much cash a company pays back to shareholders compared to its stock price. It is calculated as annual dividend per share divided by the current share price. We use it as a simple sign that a company is mature, profitable, and generates more cash than it needs.