It was 10.

But the point is, we are architecting access here, for what purpose?

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

The company's profitability improved.

So growth is the other reason why you're willing to pay a higher Price to Earnings ratio.

So this is trailing 12 months.

So a plus b have to be equal to 50.

Profitable.

So that's a little bit of a taste of why someone might realistically, in this case, pay a higher Price to Earnings for safety.

And so the way to think about it is if you're paying 3.50 per share for this company, and let's say the company next year so this is trailing 12 months earnings.

Invest financial assistance, but also management assistance.

And we can eyeball it right here.

Maybe Abby made 50 and Ben earned 0.

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

And what's left over for the equity?

It's actually managed by the network.

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

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

We need to get away from saying democracy matters because of the other things it brings.

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

So notice.

Everything on this line would be a valid combination of

It's one of the most brutal labour camps in the country.

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.

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.

Al Gore She's okay. The question is whether we will be.

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

What does that tell us?

It's just a faster way of saying

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

So now we add an interesting line.

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

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

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

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.

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

Let's compare EBlT to operating profit.

It's time to monetise the thing.