EDMUND BURKE. (SOMEWHERE.)

So let's start with the data.

Invest financial assistance, but also management assistance.

Because when someone says earnings, are those the earnings last year?

So a plus b have to be equal to 50.

Well Company A is more steady, so that's one reason.

If it's growing 100 a year for 20 years, this is actually a very good deal.

And we can eyeball it right here.

Maybe Abby made 50 and Ben earned 0.

Profitable.

And what's left over for the equity?

The earnings I just said, this is actually what happened to the company.

That's day 0.

Sometimes we're profitable. Sometimes we're not.

So, not to confuse things, but if you want to focus on GNP, then you do care about the earnings of American nationals.

And if we see how they graphed things here, on the vertical axis, what we normally associate with the y axis, they graphed Abby's earnings.

Everything on this line would be a valid combination of

The company's profitability improved.

Abby earned 10 more than Ben.

And why don't you like them as much?

So the price would be 100.

Another type of revenue model is licensing.

And the first one is that this whole idea about revenue stream, Steve, I get it.

So let's look at them over the course of one year.

So notice.

What does that tell us?

It's just a faster way of saying

This is really important to pay attention to, because so many people say, oh, a company made this much.

The difference with Ecosia though is that, in Ecosia's case, it draws the revenues in the same way, but it allocates 80 percent of those revenues to a rainforest protection project in the Amazon.

And that total revenue is the same thing as the total expenses plus the profit for that firm and that's the same as this one household's income.So let me write this down.The way we looked at the last thing,

And let's say Company B made 5 per share. 5 EPS, Earnings Per Share.

And so I'm left with net income of 350,000.

But I just want to give you the gist of what's happening.

They're going to make 0.35 in 2009 as well.

The reason why you are willing to pay a higher Price to

So let me switch colors just to ease the monotony.

And they were male and female 18 30 and they were casual fans.

And we add back the interest, at least in this example, we get to an operating profit number.

So this income will look unusually low, while these will look unusually high.

And when people talk about earnings of a company, this is what they're talking about.

And the earnings on the bank account in that year were 200.

So let's say the short term overnight borrowing for,

The Great Recession ended when American GDP resumed its kind of slow, steady march upward, and some other economic indicators also started to rebound, and they got kind of healthy kind of quickly.

The return on the investment will be high.

So you say, they both deserve a price to earnings of 10.