Stock Multiples: How to Tell When a Stock is Cheap/Expensive

Intro/Outro Music: www.bensound.com/royalty-free...
DISCLAIMER:
This channel is for education purposes only and is not affiliated with any financial institution. Richard Coffin is not registered to provide investment advice and as such does not provide recommendations on The Plain Bagel - those looking for investment advice should seek out a registered professional. Richard is not responsible for investment actions taken by viewers.

[@ThePlainBagel]

Happy Friday everyone! Have you ever used multiples before when making an investment decision? Which ones do you tend to use? Let me know!

[@KzLollapalooza]

This is going to be a million subscriber channel, please keep up the good work

[@JBulsa]

do a vid on the $1 put option. paper trade from beginning to end on Robin Hood.

[@farles777]

P/FCF

[@dynastus]

A few, P/FCF, P/NTA(or NAV), RoE(if you'd call that a multiple), D/E. Man, now I think about it...a lot.😅

[@ifcinvestor569]

Why don't you talk about 52 week range and day range?

[@AndersonFair-cy2bb]

Biggest lesson i learnt in 2024 in the stock market is that nobody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.

[@FaithAndrada-xo9ou]

Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.

[@BrewerVera]

Uncertainty... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.

[@VanessaWilliams-pu8vt]

Could you kindly elaborate on the advisor's background and qualifications?

[@BrewerVera]

Just research the name Rachel Sarah Parrish . You’d find necessary details to work with a correspondence to set up an appointment.

[@VanessaWilliams-pu8vt]

I searched for her name on the internet, found her page, and reached out via email to schedule a conversation. Thank you.

[@Riggsnic_co]

Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.

[@LindaHaire]

Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $200k portfolio is down by approximately 20 %, any recommendations to scale up my returns on investment

[@Syndiewndell]

Nobody knows anything You need to create your own process, manage risk and stick to the plan, through thick or thin While also continuously learning from mistakes and improving.

[@kevinmarten]

Exactly why i enjoy market decisions being guided by a pro , seeing that their entire skillset is built around going long and short at the same time both employing risk management and market experience , been using a portfolio-coach for over 2years+ and I've netted over $3million in that time frame.

[@LindaHaire]

Impressive can you share more info?

[@kevinmarten]

Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

[@ShukriVikas]

Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $560K for sometime now, my major challenge is not knowing the best entry and exit strategie;s ... I would greatly appreciate any suggestions

[@LancEthan]

Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.

[@catherinerea3569]

Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.

[@SheilaAnnerego]

Glad to have stumbled on this comment, Please who is the consultant that assist you and if you don't mind, how do I get in touch with them?

[@catherinerea3569]

Svetlana Sarkisian Chowdhury a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

[@RomeoSfait]

Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance

[@Redwood4040]

Opinions diverge; some claim overvaluation due to rapid gains, while others cite strong economic fundamentals justifying high valuations. Raises concern for my $600K equities going 8% up and 20% down. Should i hold on or sell off my positions and hold cash?.

[@WestonScally7614]

It may be a good idea to speak with a financial advisor who can help you develop a portfolio based on your individual goals and risk tolerance.

[@SaintYvess]

I do agree, Investing has gotten difficult especially after pandemic, hence why I decided to use the expertise of an advisor, my spouse kicked against the idea initially, but oh well guess who's best buddies with our advisor now hehehe.

[@sting_grayl]

Glad to have stumbled on this comment, I will like to give this a try. Please who is your advisor and how do I get in touch?

[@SaintYvess]

*Jennifer Leigh Hickman* is the licensed advisor I use. Just search the name. You’d find necessary details on the web to set up an appointment.

[@EthanMaloney-qp4lh]

Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.

[@marlisamirabal]

Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?

[@Cammimullens]

Focus on long term investments in property, stocks, and bonds. Avoid copying, daytrading and 'chart astrology'. Diversify across different geographies, industries, and value chain stages - to reduce your risk. You can do this with ETFs, or by selecting different stocks yourself. This is the best way to invest for more than 90% of people

[@softy-bf5eg]

No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.

[@Manselus]

How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?

[@softy-bf5eg]

ANGELA LYNN SCHILLING' is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.

[@Manselus]

Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.

[@alexsiryj]

Just look at the stocks that I've purchased and wait a couple months. The price will go down, trust me.

[@yihtorng]

short it then lol

[@dilipkumar6225]

@@yihtorng then it would go up LOL.

[@mrjiries1033]

What are the stocks that you bought?

[@finsimple4396]

@@yihtorng "ShOrT iT tHeN" Yeah just recommend beginners to short and they end up in debt for the rest of their lives, lmao.

[@KOJITAHBAWZ]

@@finsimple4396 short tsla win

[@christianfaux736]

The question of "is this share selling cheaply?" became really easy to answer in March of this year, lol.

[@c0dakw0lfgaang48]

😂😂😂😂 way to rub it in the faces of those who were longing their stock positions.

[@rylanbrownlee8614]

not necessarily

[@TheCandyMan01]

Yup, it just gives you the opportunity to buy more at a cheaper rate.

[@MrAtrice]

Unfortunately I started looking into stocks right before it dipped hard

[@ps-yk8su]

The best times to buy in 2020: March 18, May 15, July 1, October 29. 100k would have become 200k. 200k would be 400k. 400k would be 800k. 800k would be 1.6M.

[@dangremaus1164]

Utilizing forward P/E ratios is what got Enron in trouble. The books were being cooked and management was stating their earnings would constantly keep going up. Because of that, the analysts kept rating the company a "Strong Buy"...up until the glass house started falling apart.

[@jpcorp2274]

P/FCF

[@rotierender_lurch]

Wasn't Enron a ponzi scheme? That'd mean Enron never stood a "chance to survive".

[@blessingaliu123]

@@rotierender_lurch it was but most people who had invested didn’t realise until news came out

[@JoelChenFa]

@@jpcorp2274 FCF reported by? The company (Totally no fraud possible)

[@jordanleo]

@@jpcorp2274 what is FCF?

[@VarietyG4MER]

I recently graduated about a month ago from college with a degree in finance. I wanted to ego over my course material and came across this video. This is EXACTLY as it was taught to me in uni. Great video sir. Thank u

[@PhantomSavage]

Though multiples seem helpful, I'd argue probably one of the more important things is consistent positive cashflow and low or no debt. "Companies that have no debt can't go bankrupt."

[@jackhoff8574]

true

[@Shrutes]

company with no debts also grow slowly!

[@lukaslarsson3136]

Thats the definition of a value stock, usually used for dividends. Those pay way less than growth companies have the potential to. Altough since they have much more equity/share they are safer

[@JoelChenFa]

Except fraud exists

[@Mathignihilcehk]

Assuming the company doesn't get sued, yes. Companies with no debt can still go bankrupt during a lawsuit.

[@ResourceTalks]

*These animations are sooo high quality man! I should start trying this.*

[@ThePlainBagel]

Thanks dude! There's an animation program called Vyond that you could try out. It's not what I use but there are other channels that do animations with it, and I've heard good things. You could try that :)

[@ResourceTalks]

*Thank you, my sir. How long did it take you to finish this video?*

[@ThePlainBagel]

I usually spend two weeks making my videos, but that's mainly just editing on my lunch break and anywhere from 3-12 hours of editing over the weekend. I do things pretty manually through Adobe Premiere though, I'm sure Vyond would be a bit more efficient

[@AdamBechtol]

I'm often curious to hear about animation / video graphic production software. Thanks for this little convo

[@sammyalabamy111]

@@ThePlainBagel What animation program do you use?

[@codyrap95]

What I got from this video: How to Tell When a Stock is Cheap/Expensive - Answer: You can't

[@JETZcorp]

You can, just not with perfect accuracy and not from one metric. However if the P/E ratio is 1,200 and the business plan doesn't address how the company will eliminate Agent 007, I think it's safe to call it expensive.

[@lukaslarsson3136]

@@JETZcorp AKA Tesla

[@lukaslarsson3136]

You can determine if it is cheap or expensive. There is no true answer what the company should be evaluated though. So you have to speculate on what others will evaluate it in the future

[@JoelChenFa]

@@lukaslarsson3136 You can't have a P/E when you dont quite have an E

[@lukaslarsson3136]

@@JoelChenFa yes but it will be negative

[@drod3434]

I’m not a big time investor but what has worked for me in the past is very simple. Is the business revenue increasing year over year? Is the business making a profit? Does the business have good cash flow and is operating on a 15-20% margin? Does the stock pay dividend If yes I buy. Keep mind the difference between a trader and a investor

[@tabaresweddingfilms]

D Rod I am not even that good with terminology and analysis of stocks but that strategy has been working for me too, my only conditions are, has the stock been moving up for more than 5 years, is the company reliable, does it pay dividend... if yes then buy.

[@darrylbennett5092]

Same here. Those seem to be good foundational points

[@Gioxtream]

HUMMM. GIVE US SOME STOCKS AS EXAMPLE.

[@tabaresweddingfilms]

Gioxtream right now is not a good time to buy because the whole market is declining due to the corona virus in china but good stocks are apple, netflix, facebook, s&p500, VOO ..... etc.

[@kefirmma4765]

@@tabaresweddingfilms if you think Netflix is a good stock then you really don't know what you are doing. Stick to ETFs

[@PhilipMurray251]

The markets are looking favorable, after so much deliberation with my wife, I feel this is a good time to invest a lump sum of $700k ahead of retirement. What stock should I Look into to safely grow my money?

[@Patriciacraig599]

I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such execution are usually carried out by investment experts or advisors with experience since the 08' crash.

[@sheltonPston]

True. Having the right financial planner is invaluable. My portfolio is well-matched for every season of the market and recently hit 90% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, though this could take till Q3 2024.

[@Robertgriffinne]

I’ve been down a ton, I’m only holding on so I can recoup, I really need help, who is this investment-adviser that guides you

[@sheltonPston]

'Natalie Ann Brinkman' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.

[@Robertgriffinne]

Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.

[@jackwyatt9649]

It’s easier to make money now, investors should make more practical moves this coming year and seek guidance where needed since the future is unknown. Stocks with solid operational performance and financial strength, should be considered .

[@noelstout3056]

I think it’s best for investors to play it safe, No one can say what how the stock market will turn out this year. I bought some stocks I expected to do better but they didn’t.

[@noelstout3056]

Impressive. I’ve been considering stock trading, it’s incredible how much people make daily on the market.

[@robb7148]

While I’ve known about the P/E Ratio, I never quite understood it till now. Your analogy about meat prices is a perfect explanation. Thank you.

[@krabbykrabby8818]

I remember watching you guys channel last year and you've grown a lot since then. The views are well deserved tho, top notch content.

[@PinkTaco97]

6:13 "It's Simply not that Simple".

[@alexfernandez6621]

Great animations, straight to the point, very informative. Keep doing what you do!

[@giacomobauer920]

Just a little thank you comment for all the amazing work you do, your channel has truly been a help in explaining core concepts!

[@ColtonGroves]

Best video I've seen on this by far!

[@bardacha100]

Wouah, by far the best, clearest, and most straightforward explanation I have found on KZbin !

[@YSMiracle]

This is the best analogy on how to analyze a company fundamentally based on PE ratio. The example of comparing price of meats in a grocery store really reminds me of what Peter Lynch says in his One Up on Wall Street, and what's better, even easier to understand. Thank you for the smart and hard work. Very appreciated!

[@pzackery]

I have watched three of your videos now on stock market fundamentals. Solid advice, easy to understand language, and great editing. Subbed!

[@ThePlainBagel]

Thank you!

[@BC-fu3tg]

This does a good job of explaining why Buffett exceeded Ben Graham as an investor despite Buffett learning from Graham. Graham looked for value wherever he could find it and ignored the fundamentals of the business. He often found that despite finding a “deal” on the stock it went nowhere. This is due to the fundamentals of the stock. Charlie Munger introduced to Buffett the idea of finding quality businesses bought at a fair value and the rest is history.

[@hgm8337]

Jimoke history being the $50bn they dropped this quarter? Or their underperformance relative to the S&P 500 this past 15-years?

[@Crozbozy]

So basically just invest in a market ETF

[@programmer1840]

What would be an example of fundamentals?

[@JayKay9112000]

@@hgm8337 Berk.A has grown 5x since it’s low in 2009, slightly better than SPY’s 2009 low.

[@JayKay9112000]

@@hgm8337 and BERK.A trades at an 8 PE compared to SPY’s 28 PE

[@EricSmyth4Christ]

My girlfriend wants to do multiples. Now I know what she means.

[@ggrillz]

can i be one of the multiples lol

[@evancampbell7138]

Ha! 🤣

[@maegankafka4540]

Im in! Lol

[@brotheraugustine]

This channel is excellent, and you’d have ten times the viewership with more relevant branding. Just a free tip from me in exchange for all the ones I’ve learned from you.

[@CryptoDrew]

Love the videos man really! They are helpful to implement in my own way

[@WyattSimkins]

I love the emphasis that the P/E ratio is really only useful with more context. The P/E ratio may be higher or lower than competitors for a GOOD reason, and we have to take the initiative to find out why!

[@aristidesogato5402]

Exactly. I have seen examples of companies with high P/E with ever increasing profits. In essence, they actually WERE great companies and always delivered accordingly. Also, it's unreasonable to expect the amateur investor to be able to find "a good deal" that the market hasn't already embedded in the stock price. There’s no free lunch.

[@lcmlcm2460]

I’ve been investing for the past 6 months now, like VOO, Coca-Cola, VT, so far. But I want to find more individual stocks and I’m struggling with the intrinsic value but I’ll get it. Thanks for the video

[@evancampbell7138]

Great video and very helpful! Thank you, and keep up the great work!

[@davianbarton9841]

Best P/E ratio explanation video yet

[@wordforger]

THANK YOU! I've been considering doing some investing, but I have had zero clues on how to go about it. This is helpful.

[@King-ql4tg]

"The Flaming Bagel"💥💥💥......my favourite part of the video. Good work Richard. I really enjoy your videos.

[@kuyadexstar5407]

Thanks for making it clear that P/E ratios aren't everything. I'm a new investor and you explain this so well! Thanks for the vid and ez subscribe :D

[@luisjosesalazarserrano264]

Brilliant. By far the best video that I have seen to explain this concept. Keep up the great work and thank you!

[@ayushsrivastava767]

Wow no one have ever experienced pe ratio like you did thank you 👍👍👍

[@JohnKelly-jj7ss]

Thanks Rich every time listen to one of your podcast’s I learn a little bit. Your P/E one was very good.

[@kennetht9385]

So good, easy for me to understand thanks.....also fun video to watch, thanks again

[@DyslexicInvestor]

Wonderful! every education my friend! love it !

[@AmeyAlshi02]

Loved your videos! Very simple to understand and you provide different perspectives for a layman to understand the complicated Financial terminologies.

[@BizTalkk]

I’m a big fan of PEG price to earnings growth and the PS ratio for growth stocks that are still in/near their infant stages. Good way to gauge relative valuation, top video mate!

[@Bob-ke9in]

It's really stuff I already know but it's still very nice to have it repeated so coherently. Thanks.

[@mr.dividend.investor]

Great video and awesome explanation of P/E. You got a new Subscriber! I hit that like button!

[@Press10]

Been looking for this info for a while thank you

[@allenz1012]

Thanks for making this. Your videos are always so informative!

[@Kevin_Street]

Thank you for another great video! Multiples are a concept I've had trouble with in the past, but your explanation makes it very clear.

[@ThePlainBagel]

Glad to hear that this helped!

[@jooky87]

Great vid, so well structured in your explanations, very useful, and humble about the realities of market economic parameters

[@JosePerez-gj7kn]

Thanks for your excellent explanation on this matter. I look at this video many times and I start to buy stocks. Have a great day.

[@GloryInvestingShow]

This video is so good. Help newbies a lot!

[@theeEXAR]

I prefer to buy high sell low. I can do it a lot more consistently and I like consistency in my life.

[@bellamarley9455]

Love your videos!! Thank you!!

[@Seoulsearch616]

Best video I've seen about this, thanks so much! 👍

[@DBee-ee7tz]

First of all you're fricken adorable which made watching this video tolerable versus other poorly explained explanations of P/E ratios from non-adorable people. Shallow, yes but I'm owing it! Since you've made P/E ratios crystal clear as one of many multiples when considering stocks, you're earned my trust and I'm now following your channel. Thanks for being adorable!

[@jasonparker5746]

This content is invaluable! Thank you for putting multiples and P/E into perspective!

[@nierautomata9654]

“Youre not even sure if thats beef anymore” - that made me laugh haha 😆

[@brandonliao408]

There's just something to Canadian investment channels...the professional eqtiuette and minimalistic styling makes it so intriguing to watch.

[@nilvoidzero000]

I didn’t know Plain Bagel is from Canada. Good to know.

[@unucatine]

is anything better on youtube than this? already watched it 6 times

[@vberger2]

6 times eh? That's because he can't teach it well. Once or twice should be enough if it was presented properly

[@rafflesxyz4800]

Get a life.

[@BusterDarcy]

This was exactly what I needed to know at my current level as a developing investor. Can’t thank you enough for this.

[@ThePlainBagel]

Darcy Fitzpatrick glad you found it useful!

[@nagol1000]

Woah I found actually good investment advice on KZbin! Subscribed!

[@TehProBandit]

Thanks for this mate, this is relatively easy to follow and well explained. Much appreciated!

[@erichobart8886]

Great Job Bro! You make it really easy to understand. You get my Sub!😉

[@TobyNewbatt]

Really great explainer this one nearly 3 years later :)

[@CARL_093]

it helps me when is the right time to buy and sell stock i m learning from this

[@RestAtMe]

Thank you. Loved it.

[@Dhi-fe5eu]

Great video, spoke clearly, love the examples.

[@homebrandrules]

Excellent,presentation, information,Succincticity And personality Very apt name for the channel therefor I subscribed Thankyou

[@nigelpollitt5124]

Useful video. Have you also done one on understanding the fundamentals you mention en passant? And I'd like to know what the story is for non-dividend stocks, eg small caps. How do you know if a non-div stock price is fair, or a south sea bubble?

[@pohlunhan1997]

All were clearly explained! A big thumb up! Subscribed!

[@automobili2801]

Hey i have one question. Is it okay to buy stocks only by looking at their quaterly reports?

[@retirementmillions6533]

Thanks nice video for my starter.

[@NullNoxproduction]

Thank you for the informative information on investing, definitely will listen to your knowledge. 😃

[@MoneyUnshackled]

Recently discovered your channel and it's epic. You're going to be huge 👍

[@bobg2651]

Very good and I enjoyed the visualisations!

[@adventago]

Thanks for the great information its really useful

[@yerossyle]

Good video. Concrete and concise:)

[@dantegutihernandez1256]

im watching your videos from Argentina and you are awesome !

[@pongop]

Very helpful! Thank you!

[@BY-ib9ew]

Clear and concise.

[@dynastus]

Great video, clean animation, expertly explained. 💯 EPS(& therefore P/E) isn't my favorite metric for gauging a company. Can't stand companies slipping extra things into their reported eps to bolster the number. It's a great place to start when searching for an investment opportunity though.

[@alireza2295]

Great videos, man! keep up the momentum. A question: is ENPH (Enphase Energy Inc) overvalued at the moment?

[@stokes111111]

i learned a lot from this, thank you!

[@AlexATB]

Just discovered your channel, very informative and clear. thank you very much!

[@djstr0b3]

Where else would you get good animations and good content st the same time? You are awesome!

[@antiquarian1773]

7:30 scared the shit out of me, its night time when I was watching this and that noise literally made me shat my bed. Thanks :D

[@secretnobody6460]

So what do you think is a good analysis that can be paired with the p/e ratio? Something to cover the missing points of the pe ratio analysis

[@lily8261]

Your videos are really educational!

[@kissanjamm3583]

Thank you for this!!

[@iCorlitotv]

These are great!! Love the simple explanations

[@neuvocastezero1838]

Thanks for another great video. Is the value that's reported on earnings day an EPS value? And if so, why does it seem to be different from EPS when I compare them?

[@petergriffin9902]

Thank you!!! I may quit eating bagel but not this channel!

[@amadeodante]

Peter Griffin You’re gonna stop eating this channel

[@darthforexvader7201]

Peter Griffin 'rrrrrrrrrrrrrrroad house'

[@dashab8132]

THANK YOU FOR DOING WHAT YOU DO

[@capdui]

Great info, thanks man

[@dakotaborden9272]

question, what is the formula for the P/E ratio. How did he get 15 * ?

[@NarutoUzumaki-kl7wy]

You are really good brother. Appreciate it.

[@innermvp6057]

love your authenticity

[@mklik4]

Thanks! Do you have a video on how to in depth evaluate a company?

[@wilkojansenvanrensburg4825]

I love these videos!

[@Bob-ke9in]

Great advice as usual.