So notice.

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

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

We learned that in our first video.

In this case, we use last year's earnings.

And the other reason is, this was just 2008 earnings.

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

The company's profitability improved.

Maybe it goes to 2 in 2010.

You always have to be looking forward.

So this is trailing 12 months.

So a plus b have to be equal to 50.

And B is expected to make 4 per share.

Profitable.

You don't know.

So let me write this down.

Are you using future earnings?

Invest financial assistance, but also management assistance.

And we can eyeball it right here.

So these are the people, gee, subscription and half pay rental, let's do some math.

These are key metrics.

Maybe Abby made 50 and Ben earned 0.

But it's going to continue to grow.

Company C is trading at 100.

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

And what's left over for the equity?

Earnings ratio of 4.

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

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

But what happened here?

The overhead went up.

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

Everything on this line would be a valid combination of

The price to 2008 earnings for Company B is 4.

Just to give you one example

Well, if you think about it, in a new market on year 1 you have no customers, and so your revenue is essentially flat.

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 what falls out of this, if you actually take it to the next level, is what's a reasonable assumption of year 1, 2 and 3 revenue?

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.

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