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If you give a mouse a cookie, he's going to be a jerk and say, "No food allowed in the testing facility."

Valuing a Company

Valuing a Company

A few days later, Eddie sat with Miyagi in Miyagi's inner office. "So that was fundamental analysis?"

"Yep. Fundamental analysis. Running the numbers. Calculating profits over time. It's all about how a company is doing, without worrying about the market."

"That's where all the valuation ratios come in, right? So you can compare one company with another."

"Right. The biggest is the P/E ratio: price earnings ratio. If a company is going to earn a dollar a share this year, and it trades at $20,...

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