 Hey everyone, this is Dan. In this video, I'd like to show you how to use the stock selection guide and the local tools offered by Better Investing. The SG tool is a very powerful tool for analyzing the stock of a particular company. It can tell us whether the company has been making steady revenues and how their EPS is trending, as well as their debt to capital ratio, as well as many other critical information. Let's get started. Once you have logged into the SSG screen, it'll look like this. This is the basic SSG and then there's the SSG plus as well. Now once you're in this basic SSG screen, you can click on this particular icon with the file folder to start your analysis. They enter the name here of the stock. In this case, I'm going to use advanced micro devices as an example, AMD. Here it is. I selected the company and I want to initiate a new study. Now it's loading the data from the Better Investing SSG database. So on this first screen here is showing some historical data for sales. As you can see, sales was up here back in 2011. Then it dipped in 2014, particularly in 15, and it started to recover from 2016. It's been going up nicely in the last three, four years. This here is a list of the particular sales figures for those years and then we go to the next panel. Click on the next button here. This is the historical EPS. It looks like the company has been showing negative EPS from 2012 to 2016. Then the EPS turned positive and it's been going up nicely in the last five, six years. Then go to the next screen. Here's a comparison of historical stock prices here showing with the bars here in comparison to sales and EPS. Next screen, we can look at pretext profit on sales going up nicely. Again, in the last five, six years, return on equity. Next screen, this is the total debt. Of course, the less debt, the better. We can see that the debt low has been going down dramatically since 2016. Then this is the debt to capital ratio. At this point, actually, in any one of those charts, you can compare AMD to other companies. For example, if I change the peers, let's say we compare that to the Vidya and Intel. That'll do. Just the two companies. The last one, let's erase it. I'm going to click on the line for Intel and the line for Nvidia. Then also, you can click on industry average, which is the industry average chosen by better investing and the peer group average. That's the average of Intel and Nvidia. That's a little bit busy. Let's just switch off the peer group and industry average. If you look at how AMD's debt to capital ratio has been trending compared to Intel and Nvidia, definitely AMD is in better shape because they have much lower debt to capital ratio. Likewise, if you go back here, look at the total debt. You can see the comparison between the companies. You can go all the way to EPS. Every chart, basically. Let's go forward back to the debt to capital ratio. Then we can advance to the next panel. This is historical sales. At this point, you can make projection. To project the sales in the next four or five years, you can drag this point and usually I visually just line up following the trend established for the last three or four years. That means they could potentially end up with a sales of $58.5 billion by the second quarter of 2026. At this point, we need to update study so that this line will be captured in the analysis. Similarly, this is the chart for earning per share and then here we can make the projection of earning per share looking at how it's been trending in the last one, two, three, four years. I'm saying that this is roughly 37% based on the trend in the last few years. Actually, 37% is conservative because they've been going up a lot faster than that. Update of study. In the next panel, we get to select a high PE forecast. Since the PE has been ranging from 391 to 47, I would say let's say they can have a high PE of about 60. Then the high EPS forecast of 13.51 actually was calculated from the last panel because we put in the estimate of 37% growth. From that, the program calculated that in five years, the EPS will be 13.51 and then that number is carried into this panel here and then we put in the estimate of 60 high PE ratio and that's why the computer program calculates a high stock price forecast of $810.08 and currently it's at $104.08. Update of study. Here we get to put in low PE forecast based on the average of the last five years. Average PE ratio is 84.5. Let's say we estimate a low PE of 17 to be conservative and then low EPS forecast 2.8. That's also entered by the computer program based on historical performance but you can also change it manually. I'm going to accept this 2.8 default value. In addition, we can also manually enter a low stock price because based on 17 and 2.8, the computer program calculates a low stock price of 47.6. Now if you look at the historical chart of AMD for the last five years, you can see this is probably a support point that was a price level in the middle of 2020 which was around 53 and that's why when I return to this screen here the SSG screen I put down 53. That's my low forecast which is that far from the 47.6 calculated by the program but I usually like to use a reasonable support point on a five-year chart. Update the study. Move to the next panel. Here it is. This chart shows whether the stock is a good five candidate. The 53 forecast was the lowest possible price in the next five years and 810 as high as possible price. SSG like to have the price in the green zone which is a bottom 25% and mock that as a potential buy zone and currently the stock price is way down here and that's why it's a good purchase candidate. Basically you want to buy stocks that are in the green zone here and then in this last panel you can look at the comments entered by other users of SSG and you can also add your own comment if you'd like to add that. New notes you can put in whatever you like to put in and then save it. That's it. Stock selection guide. SSG it's a great tool. Thank you for watching.