level: MOS & PT
Questions and Answers List
level questions: MOS & PT
| Question | Answer |
|---|---|
| What EMH stands for and what is the concept? | EMH = Efficient Market Hypothesis That the market is efficient and rational and price its self correctly |
| What plays a huge role in the market? | Fear (& greed) |
| Why do we use 3 different types of valuation techniques? | Because there are different types of companies |
| When do we use Margin of Safety Valuation? | For fast growing company with smaller profits |
| When do we use Payback Time and 10Cap Valuation? | For slower growing company with good profits |
| When using the MOS tool in the Toolbox, what should we double check? | That the EPS TTM already keyed in is accurate |
| What is the EPS TTM and hos is it calculated? | 1) Earning per Share Trailing 12 months 2) It is the last 4 quarters earning added up |
| How to double check that the EPS TTM in the Toolbox is accurate? | Double check the number in Guru focus |