Follow me @Alice Arnault for less fluff A lot of us would use user persona, product persona etc, this is the same for stocks as well. In this case Stock persona refers to the specific characteristics and behavioral patterns of a stock, which reflect its performance in the market and how investors perceive it. It can involve factors such as volatility, stability, growth potential, and value attributes. Understanding stock persona helps you to choose some stocks suitable  for oneself and requires research and analysis. Here are some methods to understand it 1. Study the company's fundamentals: Understand the company's financial condition, profitability, competitive advantages, etc. These factors can help you assess the company'

This concept actually moves beyond short term investment but also into project decisions so many readers would be familiar with it, but when evaluating businesses and products this requires a different erspective  The payback period in business and finance refers to the length of time required to recover the cost of an investment. In simple terms, it's the time it takes for an investment to generate enough cash flows to recover the initial outlay. The calculation for the payback period is quite straightforward: Payback Period = Initial Investment / Annual Cash Inflows For example, if a company invests $1 million in a project that's expected to generate $200,000 per year, the payback period would be: $1 million / $200,000 = 5 years Good? As always in business, it depends The payback pe

🔹Why use EV/EBITDA?🔹 EV/EBITDA (Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization) is a valuation multiple used alongside P/E (Price-to-Earnings) to evaluate companies, especially those with heavy investment. It's useful for comparing firms with different capital structures and has some advantages over P/E. 🌟 Enterprise Value (EV) = Equity market cap + Long-term debt - Cash ✅ Strengths of EV/EBITDA: 1️⃣ Rarely negative: Unlike P/E, EV/EBITDA is hardly ever negative, making it easier to compare companies. 2️⃣ Eliminates D&A differences: Depreciation & Amortization (D&A) can vary across companies, but using EBITDA eliminates these differences. 3️⃣ Eases comparisons: By factoring in debt and cash, EV/EBITDA helps compare companies with different c