How do you identify whether it’s a good or bad company by using key statistic on Yahoo Finance?
On Yahoo Finance, there is a section called key statistic for a company. I would like to know what number do you look up on the key statistic to determine it’s a good or bad company? Thanks so much for your sharing.
It really depends on what you mean by a “good” company. If by “good” you mean whether the market currently thinks the company is good, then I can suggest a few statistics. If by “good” you mean whether it is “good” to invest in the company, then there are no general rules. You have to look at the specific company and do a thorough analysis of where the stock has been and where it is going. For example, the market might believe the company is doing well now, but it might be a bad time to buy because the value has already been realized (buy low, sell high).
If you’re just wondering if the company is currently doing well in the market then take a look at the statistics:
Enterprise Value / Revenue
Enterprise Value / EBITDA
You’ll need to compare these multiples to similar companies (those listed on the Competitors page, for example). The higher the multiple, the better the market believes the company is doing relative to its competitors.
This is a simplified way of looking at things, and again, it tells nothing about whether it’s a good time to buy the stock or not!
Good luck.