33: How to Pick Stocks to Invest in (Part 2: Profitability and Valuation)

<p>🎙 In part 2 of this series, we’re looking at some of the key ratios you need to be aware of when you’re learning how to pick stocks. We’ll focus on some of the key profitability and valuation ratios like EPS, P/E ratio and return on equity. These help investors determine whether or not a company is a good investment choice for their investing strategy. 🤔</p> <p><strong>This episode discusses topics like:</strong></p> <p>🌟 Why looking at the profit line in company financial statements isn’t enough;</p> <p>🌟 How ratios and benchmarks can change and don’t always give you the full picture; and</p> <p>🌟 What key profitability and valuation ratios you need to consider when evaluating investment options.</p> <p><strong>Links from this episode:</strong></p> <p>Episode transcript and show notes: <a href= "https://www.papermoneyco.com/gof33">https://www.papermoneyco.com/gof33</a></p> <p>Get your FREE Investing Starter Guide: <a href= "https://www.papermoneyco.com/startinvesting">https://www.papermoneyco.com/startinvesting</a></p> <p>How to pick stocks to invest in (Part 1: Understanding financial statements): <a href= "https://www.papermoneyco.com/gof32">https://www.papermoneyco.com/gof32</a></p> <p><strong>Time codes:</strong></p> <p>00:00 Hello and Welcome!</p> <p>02:39 Financial Statement and Analysis</p> <p>05:35 Valuation Ratio</p> <p>09:35 Profitability Ratios</p> <p>12:53 Sponsor - FIRE and Investment Calculator Spreadsheet</p> <p>14:43 Ratios Contd.</p> <p>18:14 Big News and Personal Update</p> <p>26:46 Next Weeks’ Episode</p> <p><strong>Remember to:</strong></p> <p>Join our exclusive community by becoming a Patron: <a href= "https://www.patreon.com/girlonfirepodcast">https://www.patreon.com/girlonfirepodcast</a></p> <p>🤩 Subscribe so you don’t miss any future episodes.</p> <p>🏆 Rate and review the show on Apple Podcasts: <a href= "https://www.papermoneyco.com/podcastreview">https://www.papermoneyco.com/podcastreview</a></p> <p>Podcast reviews are crazy important to the iTunes algorithm. The more reviews we rece