So this is trailing 12 months.

The company's profitability improved.

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

So a plus b have to be equal to 50.

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

How is it that you make money?

Have you seen the latest figures, children?

Profitable.

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

The price here, Company B was more.

It was 10.

Invest financial assistance, but also management assistance.

And we can eyeball it right here.

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

And B is expected to make 4 per share.

Maybe Abby made 50 and Ben earned 0.

And what's left over for the equity?

What does that tell us?

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

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

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.

Everything on this line would be a valid combination of

The price to 2008 earnings for Company B is 4.

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

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

We learned that in our first video.

We talked about the potential ways to charge

This was the earnings of the company last year, or the last 12 months.

You could also have forward earnings.

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.

So let me switch colors just to ease the monotony.

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

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

Anyway, going back to Price to Earnings, we calculated the

That's day 0.

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

It's just a faster way of saying

Travel agencies' profits soared.

You can probably guess.

This 2 were my earnings.