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How To Read A Stock (AAPL)

Learn how to read a stock like AAPL with key financial terms explained visually by Brian Feroldi.

Ask about this video. Answers come from its transcript only — with the timestamp, so you can check them.

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Key Takeaways

  • Understanding stock metrics like price, PE ratio, and beta is essential for evaluating stocks.
  • Apple’s stock is more volatile and expensive compared to the average market stock.
  • Earnings per share and dividend yield provide insight into company profitability and shareholder returns.
  • The 52-week range helps gauge stock price trends over time.
  • Visual learning aids comprehension of complex financial concepts.

What the video covers

  • A stock exchange is where stocks are bought and sold, e.g., Apple is listed on NASDAQ.
  • The ticker symbol is the short name for a stock; Apple's ticker is AAPL.
  • Current price refers to the cost of one share, with Apple trading at $225 per share.
  • Market capitalization represents the total equity value of the company.
  • Volatility or beta measures how much a stock price fluctuates compared to the market; Apple's beta is 1.22.
  • Price to earnings (PE) ratio shows how expensive a stock is relative to company earnings; Apple's PE is about 35 versus a market average of 27.
  • Earnings per share (EPS) indicates how much money the company makes per share; Apple’s EPS is $6.44.
  • Dividend yield is the income paid to shareholders for holding the stock.
  • The 52-week range shows the highest and lowest stock prices in the past year.
  • Visual explanations help simplify understanding of stock metrics.

Answers

Questions about this video

What is a ticker symbol and what is Apple's ticker symbol?

A ticker symbol is the short name used to identify a stock on an exchange. Apple's ticker symbol is AAPL.

What does the beta value of a stock indicate?

Beta measures how much a stock's price fluctuates compared to the overall market. Apple’s beta of 1.22 means it is 21% more volatile than the market.

How is the price to earnings ratio useful for investors?

The price to earnings ratio shows how expensive a stock is relative to its earnings. Apple’s PE ratio of 35 indicates it is more expensive than the average market PE of 27.

Full Transcript — Download SRT & Markdown

00:00
Speaker A
How to read a stock explained visually by Brian Faldi. First thing to know is a stock exchange, which is where you can buy and sell the stock. For example, the company Apple is listed on the NASDAQ stock exchange. Next is the ticker
00:10
Speaker A
symbol, which is the short name for the stock. Apple's ticker symbol is AAPL. Then there's the current price, which is how much one share of the stock costs.
00:16
Speaker A
Apple traded at a price of $225 per share. And there's market capitalization, which is how much the equity value of the entire company is. Then there's volatility, aka beta, which is how much a stock price goes up and down. Apple had
00:27
Speaker A
a beta of 1.22, which means that it's 21% more volatile than the stock market in general. Then there's the price to earnings ratio, which is how expensive the stock is to buy compared to how much money the business makes. Apple had a
00:37
Speaker A
price to earnings ratio of about 35, whereas the average PE ratio on the market was about 27, meaning Apple was more expensive than the market in general. Then there's earnings per share, which is how much money the company makes for each share that it
00:47
Speaker A
has. Apple made about $6.44 for each share of stock. Then there's dividend yield, which is how much money you get paid for holding the stock. And then there's the 52-week range, which is the highest and lowest price of stock traded
00:56
Speaker A
at the last year. Visual explanations like this are useful.
Topics:stock readingAAPLApple stockstock market basicsticker symbolmarket capitalizationprice to earnings ratioearnings per sharedividend yieldstock volatility

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