Glossary · reference sheet · Fundamentals
Valuation Ratios
Multiples, yields and what "cheap" requires.
Multiples
Yields
- Earnings yieldEPS ÷ price (inverse P/E) — compare directly to bond yields.
- FCF yieldFCF ÷ market cap — the cash version of valuation.
Traps
- Peak-cycle P/ECyclicals look "cheap" at peak earnings.
- Adjusted-EPS P/EInherits adjusted accounting’s optimism.
- Cheap without thesisNever buy cheap without stating WHY it is cheap and what closes the gap.
How to use this sheet
Read a row as a claim, not a fact: the term, what it means, and the condition that makes it matter. Each term has its own page, and the lessons it belongs to are linked from there.
Learn content is for education only — not individualized financial advice, a recommendation, or a solicitation to buy or sell any security. Options involve substantial risk. Examples are simplified and historical patterns never guarantee future results.