Understanding P/E Ratios Without the Confusion
Most beginners get lost in the numbers. Here's a simpler way to think about price-to-earnings that actually makes sense.
5 min readInvestment Analysis Insights
Real analysis from Australian markets. We cover what matters when you're learning to assess investments—nothing fancy, just practical breakdowns that help you understand the fundamentals.
Three Red Flags I Wish Someone Told Me About
When Callista Broadmeadow started analyzing stocks, she missed these warning signs. Now she spots them instantly.
6 min readBuilding Your Analysis Framework
Investment analysis isn't about memorizing formulas. It's about developing a systematic approach that helps you make informed decisions. Start here and work your way up.
1
Financial Statement Basics
You can't analyze what you don't understand. Learn to read balance sheets, income statements, and cash flow reports. This takes about two months of consistent practice with real company reports—Port Macquarie's local businesses make great starting examples because their reports are straightforward.
2
Ratio Analysis and Metrics
Once you can read statements, you need to extract meaning. ROE, debt-to-equity, current ratios—these aren't just numbers, they tell stories about company health. Practice comparing similar companies in the same industry to see patterns emerge.
3
Industry and Market Context
A company doesn't exist in isolation. Understanding sector trends, competitive positioning, and economic factors gives your analysis depth. Australian markets have unique characteristics worth studying, especially in resources and financials.
4
Synthesis and Decision Making
Bringing it all together is the hardest part. You'll weigh quantitative data against qualitative factors, consider risk tolerance, and make judgment calls. This skill develops over years, not weeks.
Perspectives from Practitioners
The biggest mistake I see new analysts make is chasing complex models before mastering the basics. I spent my first year just reading annual reports and comparing them to actual stock performance. Boring? Maybe. But it built intuition that no spreadsheet ever could.
Read full article
People forget that analysis is part art, part science. You can have perfect numbers and still miss the story. I learned this the hard way with a retail company that looked great on paper but was losing touch with customers. Now I always visit stores, read reviews, talk to employees when possible.
Read full articleRecent Market Notes
View Archive15 March 2025
ASX Small Caps Worth Watching This Quarter
Three companies under $500M market cap that caught our attention this week. Not recommendations—just interesting patterns in their quarterly reports that demonstrate solid analysis principles in action.
8 March 2025
When Dividend Yields Look Too Good
A 9% dividend yield sounds amazing until you dig into the payout ratio and cash flow. Here's what happened with a company that seemed like a bargain but was actually showing distress signals.
1 March 2025
Sector Rotation Patterns in Australian Markets
Our analysis of the last five years shows interesting cyclical movements between sectors. Understanding these patterns helps contextualize individual company performance within broader market dynamics.
22 February 2025
Building Your First Comparative Analysis Model
Step-by-step guide to creating a simple Excel model that compares key metrics across companies. Nothing fancy—just a practical tool that helped dozens of our students start analyzing systematically.
14 February 2025
What Changed in Corporate Reporting Standards
New disclosure requirements mean you'll see more detail in certain sections of annual reports. Here's what actually matters for your analysis and what's just regulatory box-ticking.