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Valuing a Company

Eddie sat with Miyagi in his inner office a few days later. “So that was fundamental analysis?”

“Yes. Fundamental. The numbers. Profits over time. All about how company is doing. No worrying about Market.”

“That’s where all the valuation ratio’s come in then, right? So you can compare one company with another.”

“Right. Biggest is P/E. Price earnings. Company going earn a dollar a share this year. It trade at $20. It 20 times earning. So they say.”

“How do you mean?”

“If com...

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