Path to profitability
Fundamental analysisThe route by which a loss-making company is expected to reach profit, judged as two questions in order: does one customer make money, and can total contribution ever cover the fixed cost base?
In plain terms
A company can pass the first test and fail the second permanently. Positive unit economics with a cost base the addressable market cannot support is what catches people who stopped checking after the first question.
Read the full lesson →Migration to main board
Market basicsThe move of an SME-platform company to the main exchange board, once it meets size, profitability and shareholder-count criteria.
In plain terms
The genuine bull case for an SME holding — better liquidity, wider coverage, index eligibility. It is also uncommon and slow, so it is not something to rely on when you buy.
Read the full lesson →Piotroski F-score
Fundamental analysisAlso called: F-score
A 0–9 score from nine yes-or-no tests of profitability, leverage and efficiency.
In plain terms
Built to separate cheap stocks that are recovering from cheap stocks that are failing. It measures direction, not quality.
Read the full lesson →VNB margin
Fundamental analysisAlso called: Value of new business margin
Value of new business as a percentage of the premium written on that business — a life insurer's core profitability ratio.
In plain terms
It stands in for net margin, because an insurer's reported profit falls precisely when it sells more. A fast-growing insurer looks worse on P/E than one that has stopped selling.
Read the full lesson →EV per tonne
Fundamental analysisEnterprise value divided by installed capacity in tonnes a year.
In plain terms
Compared with the cost of building new capacity and with acquisition prices. It ignores profitability, so pair it with EV/EBITDA.
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