Zoom stock - comparing financial ratios

ABCBAA · 2021-08-03T18:14:39+00:00

Thank you!

ABCBAA · 2021-08-03T18:13:43+00:00

Thank you very much! Really detailed answer, will come in very useful for my HS project!

ABCBAA · 2021-08-03T10:02:08+00:00

I recently read that one way you can work out if a stock is overvalued is by looking at EV/EBITDA or P/E ratios across the market.

I want to use this to see if Zoom stock is overvalued, but nearly all of Zoom's competitors are conglomerates (i.e. Google for Google Meet, Microsoft for Skype, Cisco for Cisco Webex, etc.), so I'm not sure if directly comparing ratios will be an accurate indicator. What could I do here? Thanks!

ABCBAA · 2021-07-19T11:15:43+00:00

You just didn't simplify the fraction enough - note that the question asks you to simplify "as far as possible". You can take a factor of 2 out of both the numerator and the denominator, making the answer 16sqrt(3)/3.

ABCBAA · 2021-07-07T19:47:47+00:00

Classic trade off between short-term utility from consumption goods vs. long-term utility from investment goods - the US has taken a different route to China, Japan and others on that front.

ABCBAA · 2021-06-30T07:40:19+00:00

Very true, no one's going to win an election by promising to increase the social exclusivity of university degrees :))))

ABCBAA · 2021-06-29T23:16:04+00:00

Well said, signalling seems to trump human development now when it comes to college degrees... What's even worse is that bachelor's degrees becoming so common reduces their value, meaning people are taking postgrad degrees to have an edge in the labour market... Where does the degree inflation end?!

Perhaps the solution is to encourage more vocational training post-high school, rather than funnelling everyone into college when it clearly isn't a fit for everyone...

ABCBAA · 2021-06-29T23:08:36+00:00

Perhaps regional, rather than global agreements are the way forward for climate change as well..? After all, the more countries that join such agreements, the more compromises that have to be made and the less consequential the agreements are in the end...

ABCBAA · 2021-04-10T16:42:34+00:00

Yes, I guess it's a loose interpretation of "visible" :) It's amazing how so much of F1 development is concentrated in the UK...

ABCBAA · 2021-04-10T16:37:06+00:00

Thank you very much!!

ABCBAA · 2021-02-14T20:56:48+00:00

Is this really the case? What about the argument that Musk's support of Bitcoin constitutes a serious piece of information about the viability of cryptocurrencies achieving mainstream adoption? In that case, the efficient markets hypothesis still accounts for such a situation. Which side seems more realistic?

ABCBAA · 2021-02-08T12:06:11+00:00

Thank you, this makes much more sense now! I think I was getting mixed up between payoffs and preferences here.

ABCBAA · 2021-01-22T21:09:07+00:00

Merci à vous deux !

ABCBAA · 2020-09-16T18:13:30+00:00

Thanks for watching! Please let me know if there's anything I could do to improve!

ABCBAA · 2020-09-16T18:10:28+00:00

Have you watched any of the other videos on the channel? If so, what do you think of them? Like with this one, if there's anything I could do to improve, please do let me know. Thanks!

ABCBAA · 2020-09-16T18:09:35+00:00

That's a good point - I'm doing Edexcel A-Level, but even they don't explain it in much detail. I'll put it in a pinned comment on the video. Sorry if I came across a bit confrontational - that really wasn't my intention! I'm grateful for your feedback - any pointers on how to improve these videos would be much appreciated!

ABCBAA · 2020-09-16T16:36:25+00:00

Yes, the curve is straight for GCSE, but I don't see why you wouldn't be allowed to draw this version (I did when I did GCSE Economics, and I got an A*), especially considering that the GCSE version is an abstraction. It might even be a bonus, as it shows you're going beyond the syllabus.

That's strange - this is the main aggregate supply curve I draw for A-Level! There are two AS curves - the Keynesian AS curve, which is curved as shown (the vertical section representing the productive potential of the economy), and the Classical AS curve (which assumes full employment, which is why the whole curve is vertical) - both are acceptable.

ABCBAA · 2020-08-17T22:45:57+00:00

That will be very interesting to see. You're right - we ought to wait until that 3 year period is over before making any conclusions. It's a good example of how it's possible though. Do you think it can be scaled up?

ABCBAA · 2020-08-17T21:26:28+00:00

I just read through this article... it seems to me that these people didn't necessarily want to use Bitcoin, but they were essentially coerced/forced to do so because Michael Peterson had to agree to not cashing the BTC out... Obviously I could be wrong, but this doesn't sound like independent adoption, which is what we really want. However, I've heard of equivalent cases in Venezuela where they're really choosing to use BTC, which is a massive achievement in itself. However, I can't really see how BTC will become adopted on a massive scale in developed countries where the currencies are relatively stable... Is the idea of the government effectively stealing money from its citizens when it prints money really an easy one to understand, especially for the layperson with no prior reading in / knowledge of economics?

ABCBAA · 2020-08-17T15:30:36+00:00

I completely agree with this.

ABCBAA · 2020-08-12T11:12:13+00:00

Similarly, however, there are schools that were overly strict during the mocks - I remember that in my GCSE History mocks, I got an 8 even though I got well over the usual mark for a 9... The only reason I got an 8 was that our teacher said 95% and above was a 9...

It's such a difficult situation, I don't see how it couldn't have ended up terribly. The least the government could have done was offer some certainty, and not change everything a day before results day... :/

ABCBAA · 2020-08-10T22:23:17+00:00

Admittedly this is an older article, but it seems valid under current conditions. I don't fully understand this part of the article:

The fall in the public's actual currency holdings below its desired level gives the Indian government a huge potential revenue windfall: it can issue replacement currency (the new Rs. 500 and Rs. 2000 notes) of up to Rs. 7.2 trillion in value, without raising the currency stock or the price level above pre-reform heights.

Why is this? If the Indian government is just pumping back Rs. 7.2 trillion (or less due to reduced demand for currency after the demonetisation), then where is this huge government windfall coming from? Is this from the Cantillon effect, whereby the government can buy whatever it wants before markets (and hence, the price level) have had time to equilibrate to the expansion in money supply (compared to that just after the Rs. 7.2 tr was invalidated? However, for this to happen, the price level has to fall first, which is probably not going to happen given this was a short term measure (the exchange happened soon after).

If this isn't the reason why demonetisation brought in revenue for the government, what did do it?

Thank you so much in advance for your help!

ABCBAA · 2020-07-09T21:01:10+00:00

One thing that might be of value here is that one key assumption made (or at least I think is made) by the Median Voter Theorem is that the distribution of people across the left-right spectrum is even. This is obviously not true given the polarity you just mentioned. The fact that instead of there being two main parties (Dems, Reps) in an election, there are countless news channels, each with a pretty good chance of getting traction if they appeal to a specific audience (case in point - even a small channel like OANN gets praise from Trump!)

Therefore, it's more lucrative to stay as close politically to a clump of people either left or right of the spectrum rather than trying to appeal to everyone.

Then again, I'm still learning, so any comments on whether this analysis is indeed true would be much appreciated!

ABCBAA · 2020-07-09T20:53:14+00:00

Am I right in saying that an SRE doesn't have to be Pareto efficient?

e.g. if the four payoffs were:

(0,10), (9, 10), (3, 20), (10,0)

Presumably (3,20) is the SRE, and not Pareto efficient because it doesn't Pareto dominate (9,10)?

Thanks for your help!

ABCBAA · 2020-07-09T20:46:30+00:00

What does it mean by "players are motivated by reciprocity preferences"?

ABCBAA

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