# 💜 Nutrition Facts (Stocks)

**Published by:** [Let Them Eat Cake](https://paragraph.com/@ltecake/)
**Published on:** 2022-06-20
**URL:** https://paragraph.com/@ltecake/nutrition-facts-stocks

## Content

Price to Earnings / Price per Pound A comparison of the cost of a share to the earnings per share. A measure of “bang for your buck”. A food like caviar has a very high P/E, because you pay a lot and get a little. Earnings per Share / Serving Size A comparison of the earnings of a company to the number of shares issued. Whenever you see a price, it’s important to consider the serving size as well to understand the overall value of what you are buying. Beta / Comparative Performance When paper towels announce they are “5x more absorbant than the leading brand” consumers can benchmark the product against competitors. Financial products use a benchmarks as well, called Beta, which indicates outperforming the market if >1 and underperforming if <1. Beta reflects the frequency of price changes versus competitors. If a products price moves in perfect unison with the market, it’s Beta would be 1. Alpha / X Factor Some foods have an X factor - an unexplainable quality that makes them better than the rest. In finance, this is Alpha. Alpha is determined after accounting for a product’s Beta, separating it’s unique performance from it’s relationship to the overall market. Seeking Alpha, a financial literacy website, was named after this key performance indicator. Issuer / Ingredients The substance of your product. It could be a single ingredient item, or an amalgamation. Health LabelsEnvironmental Friendly / Non GMOSocially Responsible / OrganicCorporate Governance Best Practices / Gluten FreeWarning LabelsUnregistered Security / Not FDA ApprovedCurrency Risk / Contains CaffeinePolitical Risk / Processed in a Facility that Contains NutsInflation Risk / Bag may expand at altitude

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