The Motivation To Invest The Motivation To Win: Fundamental Valuation on How To Buy and Sell Stocks (The P/E Logo: The Motivation To Invest Book 1)

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An Easy Guide To Knowing How To Buy And Sell Stocks

I started off calling this program The Cheat Sheet, which basically meant that it was a quick reference guide like the one we used to use in school or doing college term papers. Because there are different aspects to research and value a stock from, it would be impossible not to have one (a Cheat Sheet or Triage Form). I then decided to give it a more descriptive name of what it is and what it is made of, so I called it the Triage Form and Definitions. Triage, which is used in the E.R. of hospitals or during emergencies where there are a lot of people attend to, means to make a quick assessment (of a stock). A quick and formal way of knowing important information of the stock that has caught my attention before buying it, or putting it on my watch list.
Thus, the Triage Form and Definitions (This Cheat Sheet) will make more sense to those that view it when beginning to literally pick a stock or create a portfolio to invest your hard earned money into, and can be added to a growing list of formulas and terms which go along with it, and still be as easy to learn as this one. Once getting the feel of it, things become clearer and easier, and as you start to learn more, you’ll also start to add more ways of valuing a stock to that list.

Whether your list for valuing stocks comes out to a page long or twenty pages long, it doesn't matter because there are several ways of valuing a stock and thus there can be several lists with different fundamental valuation or technical analysis methods used to get different perspectives on a stock. I started off first with the most used methods by most investors and worked out from there.

The fundamentals or rather the Fundamental Valuation methodology is the interpretation of the numbers like:
Revenue
Gross Margin
Operating Expense
Or
Operating Income
Net Income Applicable to Common Shares)
Etc.
The Fundamental Valuation methodology would make more since when taking a quick peek at either one or all three of the Financial Statements or better yet, the Triage Form and its Definitions when first looking at a stock. The Triage Form and its Definitions has a list of some of the most important tools (formulas and ratios) that are used when first deciding to choose a stock to research or buy.

The Financial Statements represent what is going on behind the doors of the company whose stock you have bought. The interpretation of the financial statements is what helps you know if it is the right stock to buy. The interpretation of financial statements is the ability to tell what has been happening in each particular aspect of the company.

The Triage Form is a sheet with ten lines at the top for identifying the stock; information that is usually given on one of the financial websites like Yahoo/Finance or CNN/Money.com

Date
Name
Symbol
Sector
Price
Quarter Earnings Report Date
1 year (price) Target
Beta
Daily Volume
Average Volume

There are then about thirty ratios (with their formulas) with short definitions in the next column. And on the very next page, the definitions in more detail, which are used to make a quick assessment of a stock when looking for a stock to buy or research further to add to your portfolio.

Quick Valuation Triage Form & Definitions

Market Cap or Market or Value of Equity. is the Total dollar market value of all outstanding shares (=)
Current Stock Price (x) Number of Outstanding Shares.

Revenue is the top line prior to paying any of the expenses

Revenue Per Share is Total Rev. ÷ Weighted Average Outstanding shares (W. A. O. S.)

Net Revenue (=) Gross Revenue (–) total of returns and allowances `

Gross Profit is Gross Revenue (–) COGS (Cost of Goods Sold)
Gross Revenue (–) total operating expenses in cost of sales (COGS)

Gross Profit Margin is Gross Profit (÷) Revenue
(the higher, the better) 40% or better is good)

Net Income T