The simplest indicator to judge the execution of the management: Gross Margin
The Return On Equity (ROE) algorithm is “net profit after tax/shareholder equity × 100%”, which is one of the few financial figures that can be used to measure the operational performance of a company’s leadership team. It represents the efficiency of the company’s profit for shareholders, and it can also be said to measure the company’s overall capital utilization efficiency. Therefore, the higher the value, the better.
The businesses of Amazon and Alibaba are almost the same in all aspects, so the two are highly comparable. Just as Amazon’s stock price is not very good this year, and Alibaba has collapsed by more than 40% now, let us compare the two e-commerce giants in China and the United States.
At least figure out those things before investing in a business?
Valuation methods significant different between US and Taiwan investors
Why I prefer growth stocks instead of value stocks?