The company's profitability improved.

Profitable.

So this is trailing 12 months.

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

So a plus b have to be equal to 50.

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

It looks like our profit is jumping all over the place.

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

So notice.

Invest financial assistance, but also management assistance.

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

It's the same plot.

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

Maybe Abby made 50 and Ben earned 0.

And we can eyeball it right here.

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

And what's left over for the equity?

So let me switch colors just to ease the monotony.

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

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

It's just 10 because one, this is a nice round number.

(Laughter)

Everything on this line would be a valid combination of

So now we add an interesting line.

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

We are assuming a very simple world, were the is no taxes, we have no debt, we have no intrest or things

Abby's and Ben's earnings given only this first constraint.

But today we re going to be talking about revenue streams.

Company A made 1 per share. 1 of EPS.

Abby earned 10 more than Ben.

And that's because they have the same exact asset.

Let's compare EBlT to operating profit.

And why don't you like them as much?

So the price would be 100.

Another type of revenue model is licensing.

It's time to monetise the thing.

You always have to be looking forward.

This is 2009 estimates.

We talked about the potential ways to charge

Have you seen the latest figures, children?

Let me say that again.

This is unreported income gained from an illegal venture.

And how they were going to create demand was through search ads, social media, stadium promotions.

Because to some degree, rental is kind of the earnings on a home.

Are you with me?