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

Are you using the past 12 months earnings?

Are you using future earnings?

The return on the investment will be high.

Why wouldn't I just pour all of my money?

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

One is, you could kind of flip this.

They're all jumbled up as just kind of the company is making this much money.

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

The company's profitability improved.

So this is trailing 12 months.

So a plus b have to be equal to 50.

Profitable.

Invest financial assistance, but also management assistance.

And we can eyeball it right here.

Attribute in use

At any given price point, higher quantity demanded.

Maybe Abby made 50 and Ben earned 0.

Let's say that we don't know that they're truly equal.

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

And what's left over for the equity?

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

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

So this one's worth a little bit more, because it's earning a little bit more money.

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

So now we switched places.

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

So notice.

Everything on this line would be a valid combination of

And what type of a return can they get?

It's called the Extractive Industries Transparency Initiative.

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

You might wanna get to an employee, bribe one.

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.

Ladies razor blades.

When? I said it's time to monetise the site.

We talked about the potential ways to charge

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

What does that tell us?