{"id":17499,"date":"2023-04-12T11:22:42","date_gmt":"2023-04-12T03:22:42","guid":{"rendered":"https:\/\/kclau.com\/webinar\/?p=17499"},"modified":"2023-04-17T07:27:10","modified_gmt":"2023-04-16T23:27:10","slug":"how-roe-can-help-uncover-profitable-stocks","status":"publish","type":"post","link":"https:\/\/kclau.com\/webinar\/how-roe-can-help-uncover-profitable-stocks\/","title":{"rendered":"How ROE Can Help Uncover Profitable Stocks"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Two stocks: A Ltd and B Ltd.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A Ltd had reported $50 million in earnings.<br>B Ltd had reported $100 million in earnings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, is B Ltd a better investment than A Ltd?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To me, not necessarily. This is because, as an investor, I\u2019ll calculate and compare the two stocks based on their Return on Equity (ROE). So let\u2019s say:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A Ltd had reported $250 million in shareholders\u2019 equity.<br>B Ltd had reported $1 billion in shareholders\u2019 equity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I would calculate that A Ltd\u2019s ROE is 20% and B Ltd\u2019s ROE is 10%. Hence, I\u2019ll view A Ltd as a better investment than B Ltd as A Ltd had delivered 2x more earnings from its shareholders\u2019 equity as compared to B Ltd. So despite lesser earnings, I would pick A Ltd over B Ltd.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But, that is just one factor that I use to evaluate stock deals. In this session, I would share more insights about ROE.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Content of the webinar:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8211; What ROE actually measures?<br>&#8211; Why is ROE the most important financial ratio?<br>&#8211; Comparing a stock\u2019s ROE with its peers and past performance<br>&#8211; Other factors: debt level and growth factors.<br>&#8211; How to use features offered by ShareInvestor WebPro<\/p>\n\n\n<\/p>\n<p><script src=\"https:\/\/fast.wistia.com\/embed\/medias\/n5k3ge5ekw.jsonp\" async=\"\"><\/script><script src=\"https:\/\/fast.wistia.com\/assets\/external\/E-v1.js\" async=\"\"><\/script><\/p>\n<div class=\"wistia_responsive_padding\" style=\"padding:56.25% 0 0 0;position:relative;\">\n<div class=\"wistia_responsive_wrapper\" style=\"height:100%;left:0;position:absolute;top:0;width:100%;\">\n<div class=\"wistia_embed wistia_async_n5k3ge5ekw videoFoam=true\" style=\"height:100%;position:relative;width:100%\">\n<div class=\"wistia_swatch\" style=\"height:100%;left:0;opacity:0;overflow:hidden;position:absolute;top:0;transition:opacity 200ms;width:100%;\"><img decoding=\"async\" src=\"https:\/\/fast.wistia.com\/embed\/medias\/n5k3ge5ekw\/swatch\" style=\"filter:blur(5px);height:100%;object-fit:contain;width:100%;\" alt=\"\" aria-hidden=\"true\" onload=\"this.parentNode.style.opacity=1;\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n\n","protected":false},"excerpt":{"rendered":"<p>Two stocks: A Ltd and B Ltd. A Ltd had reported $50 million in earnings.B Ltd had reported $100 million in earnings. So, is B Ltd a better investment than A Ltd? To me, not necessarily. This is because, as an investor, I\u2019ll calculate and compare the two stocks based on their Return on Equity [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":17500,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,8462],"tags":[8542,8425,8541,8413],"class_list":["post-17499","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment","category-stocks","tag-fundamental-analysis","tag-investment","tag-roe","tag-stocks"],"_links":{"self":[{"href":"https:\/\/kclau.com\/webinar\/wp-json\/wp\/v2\/posts\/17499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kclau.com\/webinar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kclau.com\/webinar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kclau.com\/webinar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kclau.com\/webinar\/wp-json\/wp\/v2\/comments?post=17499"}],"version-history":[{"count":3,"href":"https:\/\/kclau.com\/webinar\/wp-json\/wp\/v2\/posts\/17499\/revisions"}],"predecessor-version":[{"id":17508,"href":"https:\/\/kclau.com\/webinar\/wp-json\/wp\/v2\/posts\/17499\/revisions\/17508"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kclau.com\/webinar\/wp-json\/wp\/v2\/media\/17500"}],"wp:attachment":[{"href":"https:\/\/kclau.com\/webinar\/wp-json\/wp\/v2\/media?parent=17499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kclau.com\/webinar\/wp-json\/wp\/v2\/categories?post=17499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kclau.com\/webinar\/wp-json\/wp\/v2\/tags?post=17499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}