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

So this is trailing 12 months.

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

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

So a lot of people immediately will figure out the Price to

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

The company's profitability improved.

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

Maybe Abby made 50 and Ben earned 0.

So a plus b have to be equal to 50.

The first thing you have to figure out is what's the revenue stream

How might I recover it?

Profitable.

I'm doing okay.

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

Invest financial assistance, but also management assistance.

Are you using the past 12 months earnings?

Blackout proposed by the Prime Minister.

Will he get well?

Will he recover?

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

And so you're almost ready.

And we can eyeball it right here.

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

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

At the end of the month we count your clicks

This is Earnings Per Share, not total earnings.

But when you lower the Price to Earnings you are increasing the Earnings to Price.

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

This 2 were my earnings.

Are you using future earnings?

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

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

So what that would do is it would lower the short term of the yield curve.

What does that tell us?

He has no chance of recovering.

There's no chance that he'll recover.

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

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

As a matter of fact, you did a pretty large catering.

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

So now we add an interesting line.

So for every dollar of earnings per year, if you believe that the 2008 earnings are indicative, you're paying 4 here.

We learned that in our first video.

And so I'm left with net income of 350,000.