📊 Understanding Value Investi

📊 Understanding Value Investing: Ratios, Dividends and Economic Moats

One thing I have learnt from investing is that a cheap-looking stock is not necessarily a good investment. I need to understand what I am paying for and whether the company has a sustainable competitive advantage.

📈 1. Financial Ratios Matter

I look at ROE, P/E and dividend payout ratios. A high ROE looks attractive, but I also need to check whether the company is using excessive debt to generate those returns. For P/E, I prefer comparing the valuation against its own historical range rather than simply comparing it with competitors.

💰 2. Dividend Consistency

I like companies that can consistently reward shareholders. However, a high dividend yield alone is not enough. I need to examine earnings, cash flow and payout ratios to determine whether the dividend is sustainable.

🏰 3. Economic Moats

My favourite businesses

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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