Read a business the way an analyst does.
This module draws on valuation concepts Todd studied in the Wharton Essentials of Finance program, rewritten for beginners.
Lesson 1 of 4
Revenue is all the money a business brings in from sales. Profit is what remains after every cost: ingredients, wages, rent, taxes, interest.
Cash flow tracks when money actually moves. A business can be profitable on paper and still run out of cash if customers pay late or a slow season hits. In tourism-heavy Hawaiʻi, cash flow swings with the visitor seasons.
Enter a share price, shares and profit to find market cap, P/E and earnings yield.
Start from an example (made-up numbers)
$2.4B
Market cap
$4.25
Profit per share (EPS)
14.1
P/E ratio
7.1%
Earnings yield
A P/E of 14 is in the middle of the usual range for established companies.
Your best score is saved in this browser.
Answer every question to check.
For learning only. Kuleana Finance explains how money works. It does not tell anyone what to buy or sell.