So notice.

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

You don't know.

The price to 2008 earnings for Company B is 4.

Just to give you one example

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

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

Maybe it goes to 2 in 2010.

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.

Profitable.

You always have to be looking forward.

So let me write this down.

And B is expected to make 4 per share.

So a plus b have to be equal to 50.

Are you using future earnings?

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

These are key metrics.

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

Invest financial assistance, but also management assistance.

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

Maybe Abby made 50 and Ben earned 0.

And we can eyeball it right here.

Earnings ratio of 4.

But it's going to continue to grow.

Company C is trading at 100.

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

And what's left over for the equity?

So let me switch colors just to ease the monotony.

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

But what happened here?

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

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

Everything on this line would be a valid combination of

So now we add an interesting line.

The overhead went up.

That amount times 52 weeks, i.e. weeks per year

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?

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

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

They're paying 400 the next month

So now we switched places.

And then their pre tax profit is going to be the same thing as the operating profit, so minus 100,000, minus 100,000, 400,000 I'll make the good years in green 400,000.

Abby earned 10 more than Ben.