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Wednesday, November 3, 2010

Financial Ratio Analysis - peer comparison

Without peer comparison the financial ratio analysis can not be complete. What I'm showing you here are five companies' ratios side by side. The five companies are Amazon, Ebay, Walmart, Costco, and Overstock. Pay attention to Amazon and Walmart. As I mentioned in previous post, these two firms really show similar profitability and efficiency performance.  I really found this framework helpful to compare competitors. (Note: don't just assume the best company will have the best price action in the future)

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