 Welcome to the channel. This is Reliable Rudy and today we're going to go in depth of the everything money software and Everything that I use to get value out of this software to be able to determine the value of an individual company So starting we'll stick with Apple since we used it on the last video So we're just on the metrics tab. I can see the market cap of the company Take share price multiplied by the total shares outstanding to get a Total market cap of two point four seven trillion. I can see the revenue year-to-date net income year-to-date Price divided by earnings year-to-date the five-year price to earnings ratio the profit margin five-year average profit margin Gross mark gross profit margin Price of sales ratio now price of sales is simply you got to invest 6.39 dollar or six dollars and thirty nine cents for every dollar of revenue that Apple generates I can see their year-to-date free cash flow now free cash flow is just the bottom line profit of the company after all Expenses now they can use that free cash flow to buy back shares pay dividends pay off debt Reinvest into the business and I'm sure there's some other stuff But that's in a sense what a company can do with free cash flow. I also see their five-year average free cash flow I can see they pay a small dividend now with any dividend company. I Want to make sure that their dividends paid isn't taking too much of that free cash flow in Apple scenario It doesn't take up too much of it that is beautiful as what I want to see in a dividend company Now I'd also want to know what the dividend growth of that company is But that may be for another video when we're talking about an individual dividend company Moving right along return you can see the return on assets return on equity their return on invested capital year-to-date five-year average return on invest capital their five-year book growth and ten-year book growth So going to the eight pillar process that everything money teaches we're going to go over each one of these pillars and then we will Wrap this video up. So the first pillar they want their five-year average Price to earnings ratio to be under twenty two point five Right now sitting at thirty five and a half now. I can see their five-year average PE right here right on the metrics tab thirty five point six five Next pillar five-year return on invested capital. They want it to be greater than nine Apple currently sits at thirty three point four I can see it right here on the metrics tab Revenue growth over the last five years go into the income statement five years ago 220 the 240 billion roughly in that window now the red 386 billion Okay, that is there is revenue growth there net income growth same thing and go into the income statement Five years ago right around that fifty billion now. They're sitting at a hundred and one billion There's revenue growth Are not revenue growth net income growth shares outstanding You want the company to be buying back shares if the company has ten shares and you own one of those shares You want ten percent of the business Now let's say the company buys back five of those ten shares now you own twenty percent of the business Now let's say they issue ten shares and now there's twenty shares Total you still own one share now. You only own five percent of the business This is why you want your companies to be buying back shares. You don't want to be getting diluted and To find that you can go into their income statement go to their shares outstanding I can see over the last five years. They've gone from twenty billion to sixteen point two eight billion Moving right along long-term liabilities LTL divided by five-year free cash flow now They want this number this calculation right here to be under five an apple scenario. They're at two point zero six If you don't know how to calculate that you go into the balance sheet Go to total long-term liabilities of one hundred and fifty five One hundred and fifty five billion so we're going to take one hundred and fifty five billion 155 divided By the five-year free cash flow here is the five-year free cash flow of seventy five billion So we're going to divide that by seventy five billion and that is where they get this calculation on this number Shows it right here. This basically shows that it takes about two years of their average free cash flow to pay off their total long-term liabilities now you want your company especially in Today's time with the rising interest rates you want your companies to be able to pay off their debts and Be sitting sitting in a good spot Especially coming into a lot of these rate hikes you want the companies to be able to pay off their long-term debts Moving right along cash flow growth over the last five years, so I'd go to the cash flow statement. I Look at the cash flow free cash flow now over the last five years They're roughly right around that fifty billion now. They're at a hundred billion 105 billion there is growth over the last five years that's what they're looking for and the last metric the five-year Price to free cash flow So they take the five-year price To free cash flow and they want this ratio to be under 32. This is just the valuation metric So pillars eight and one are valuation Pillar number six is your debt Pillar number five is your shares outstanding pillar number two they return out of S capital and Pillars three and four are just revenue and net income growth and That is a brief overall Example of the everything money software process and what they teach I hope you guys enjoy the video and I will see you on the next one