How to use YAHOO FINANCE for Stock Analysis in 2021

In this video I'll give you a quick but hopefully
comprehensive introduction in how to use Yahoo Finance for your Stock Analysis. Hello Couch Investors, my name is Till and
this is the channel that shows you how to invest intelligently and easily and how you
build up a fortune also as an ordinary person with a normal job. Yahoo Finance is a pretty good platform that
offers a lot of data for private and professional investor for free. In this video I show you how to use it and
where to find the data that you need for your stock analysis. If you want to know how to do a complete stock
analysis there are a lot of videos on my channel that will show you exactly this and for this
case I recommend to start with this one here in the corner where I'm doing a full analysis
of a company.

You start with the website finance.yahoo.com
and log in to your account. If you don't have an account yet, you can
setup one for free by clicking on Create an account .
To find your specific company, just type the company name or the short code of the stock
in the search field. Let's do this for Tesla, its shortcode is
TSLA . Yahoo automatically provides some suggestions. The one on the top is the stock of Tesla at
the Nasdaq stock exchange. There are more entries from other stock exchanges. If you're looking at non-US companies, I recommend
to chose the stock exchange of a company's home country, because the company data that
we're searching for are sometimes not available for every stock exchange. This is the summary tab. On the left it shows some information on stock
prices, stock price history or trading volumes. Personally, I never look at those data because
as a value investor I simply don't need them.

In the column right next to it you'll find
some actually useful key data. On top is the market capitalization. This is the most important figure on this
tab. It tells you how much the whole company currently
costs. So, current stock price x all outstanding
stocks. Below the market cap you'll see the PE ratio. PE means price per earnings and gives you
an indication on how expensive the company is in relation to what they generate in earnings. This is one of the key figures that Wall Street
looks at and you'll find it just anywhere. Unfortunately it is not really that reliable,
why value investor look more and free cashflow. But it is helpful for a quick indication,
especially if you're searching for stocks and want to narrow them down to a few. On the right you see a small stock chart that
provides you with a quick overview for timeframes between 1 day and 5 years.

If you want to look at a bigger version of
the chart with different time frames and other options, just click either on Max , Full screen
or Chart in the menu above. I'm going to create another video on how to
use the chart tool that I will link here somewhere above me as soon as it is available. The tab Statistics contains a lot of ratios
and valuation figures. A few are interesting, most of them are just
a waste of time, at least for value investors. As an example for the waste of time category
is Forward P/E a figure that contains assumptions about the future development of the earnings
in relation to the price. But, who made these assumptions? Analysts? The company itself? Batman? And based on what? This is completely unclear and therefore,
you better ignore it.

By the way: Information about what analysts
estimate on earnings and revenue you'll find in the tab Analysis .
The Price to Book and Price to Sales ratios at least give you an indication on how expensive
a company is. For me, the most important information on
this page is the number of shares outstanding which I need for the calculation of the company's
value per stock. On the profile page you receive some basic
information about a company. Like for example their headquarter, contact
address, what they are doing, and who the top management is. In this case you see that the Technoking of
Tesla Mr. Elon Musk is and the Master of Coin is Mr. Zachary Kirkhorn. Yes, those are really the official titles
at Tesla for the CEO and the CFO.

I'm far from being a Tesla fanboy, but I really
like a good portion of humour in a world of seriousness. On the right side you get some information
about upcoming and recent events on the company. Before we come to the most important tab I'd
like to ask you to click the like button if you found this helpful. This is actually supporting my channel a bit. Thank you! For me the most important tab are the Financials
. Here you find the data from the Income Statement,
the Balance Sheet and Statement of Cashflows. In the top right corner you can chose if you
want to have the view on an annual or quarterly basis. The overview provides you with data for the
past four years plus the trailing twelve months or the past five quarters.

If you want to view them in a more condensed
perspective you can click on Collapse All or if you want to view the details, klick
on Expand All . For value investors especially the tabs Balance
Sheet and Cash Flow are interesting. The balance sheet contains the assets, split
into current and non-current assets and its various details and the liabilities, also
split into current and non current liabilities. You will need these figures for calculating
some of the most important valuation figures: – the liquidation value also called shareholder's
equity is one of the two parts of the company's overall value and tells you how much the owners
get if the company would be liquidated today – the invested capital tells you, as the name
says, how much capital is actually invested in the company
– and the CROIC, which tells you something about how strong the company is with generating
cash on the invested capital, which is indirectly an good indicator of the speed of growth The tab Cashflow contains the information
of the company's statement of cashflows. This is split into three sections:
– the Operating Cashflow – the Investing Cashflow
– and the Financing Cashflow For me the most important information is the
Free Cashflow.

You can calculate this by taking the Operating
Cashflow and deduct the Capex of it. The Capex you'll find as an entry in the section
Investing Cashflow . Free Cashflow tells you something about the ability of the company's
operating business to generate cash. Why this is so important I'll show you in
the two videos on Free Cashflow that I'm going to set a link to somewhere here in the corner. It doesn't consider all of the other financial
stunts that the company can do. If you want to know more about this, have
a look at the section of the Investing and the Financing Cashflow. Value Investing seems to become more popular
today, so Yahoo Finance already calculates the Free Cashflow for you. You'll find the figure on the bottom of the
table. I like this as a quick indication, but sometimes
it didn't fit to the manually calculated figures, so be a bit careful with this and really just
use it as a quick indication.

One general remark: Yahoo gets its data from
several different sources, you can see this here on the right. I personally don't know how exactly the flow
from the actual company reports to the Yahoo systems is. But it happens that you find figures that
do not exactly add up the way they should, like the just mentioned Free Cashflow. Although I really like this service to get
a quick overview about a company's financials, for the deep dive analysis I usually work
with the actual reports from the companies. I know this is definitely a bit more work
to do, but only this way I can be sure that the figures I work with are definitely correct. And when you do this only for the companies
that you really intend to buy one day, the general workload is also limited. And if you want to know how you create watch
lists for your stocks with Yahoo Finance, you should watch this video here.

See you next time!.

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