Fundamental analysis


The Beta coefficient, or financial elasticity ( sensitivity of the asset returns to market returns, relative volatility), is a key parameter in the Capital asset pricing model (CAPM). ...more on Wikipedia about "Beta coefficient"

The book value of an asset or group of assets is sometimes the price at which they were originally acquired ( historic cost), in many cases equal to purchase price. ...more on Wikipedia about "Book value"

In finance, cash flow refers to the amounts of cash being received and spent by a business during a defined period of time, sometimes tied to a specific project. ...more on Wikipedia about "Cash flow"

Diluted EPS is a company's EPS figure as calculated using fully diluted shares outstanding (i.e. including the impact of stock option grants and convertible bonds). This is important in showing the users of the income statement a "worst-case" scenario if everyone that could have received stock without purchasing it directly for the full market value, decreasing the "worst-case" EPS. ...more on Wikipedia about "Diluted EPS"

A dividend is the distribution or sharing of parts of profits to a company's shareholders. ...more on Wikipedia about "Dividend"

The dividend yield on a company stock is the company's annual dividend payments divided by its market cap, or the dividend per share divided by the price per share. It's often expressed as a percentage. ...more on Wikipedia about "Dividend yield"

Du Pont Identity is an expression which breaks ROE ( Return On Equity) into three parts. ...more on Wikipedia about "Du Pont Identity"

Earnings per share (EPS) are the earnings returned on the initial investment amount. ...more on Wikipedia about "Earnings per share"

Enterprise value (sometimes Total enterprise value, or TEV) is a market-based measure of a company's value. It's mainly market cap + debt. If you buy the company you buy the debt load. ...more on Wikipedia about "Enterprise value"

Equity value is a market-based measure of the value of a firm. It accounts for all the ownership interest in a firm including the value of unexercised stock options and securities convertible to equity. Equity value differs from market capitalization in that it incorporates all equity interests in a firm whereas market capitalization only reflects those common shares currently outstanding. ...more on Wikipedia about "Equity value"

A financial ratio is a ratio of two numbers of reported levels or flows of a company. It may be two financial flows categories divided by each other (profit margin, profit/revenue). It may be a level divided by a financial flow (price/earnings). It may be a flow divided by a level (return on equity or earnings/equity). The numerator or denominator may itself be a ratio (PEG ratio). ...more on Wikipedia about "Financial ratio"

Fundamental analysis is a stock valuation method that uses financial analysis to predict price movement. ...more on Wikipedia about "Fundamental analysis"

Fundamentals analysis is a school of thought that is used when attempting to predict future trends in the stock market. The other school of thought is technical analysis. ...more on Wikipedia about "Fundamentals analysis"

Growth Stocks in finance, are stocks that appreciate in value and yield a high return on equity (ROE). Analysts compute ROE by taking the company's net income and dividing it by the company's equity. To be classified as a growth stock, analysts expect to see at least 15 percent ROE. ...more on Wikipedia about "Growth stock" Come again to www.shortopedia.com

Price-to-book ratio or P/B ratio, is a ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value (book value is simply total assets minus intangible assets and liabilities). ...more on Wikipedia about "P/B ratio"

In finance, the P/E ratio of a stock (also called its "earnings multiple", or simply "multiple" or "PE") is used to measure how cheap or expensive share prices are. It is probably the single most consistent red flag to excessive optimism and over-investment. It also serves, regularly, as a marker of business problems and opportunities. By relating price and earnings per share for a company, one can analyze the market's valuation of a company's shares relative to the wealth the company is actually creating. A PE ratio is calculated as: ...more on Wikipedia about "P/E ratio"

In finance, a PEG ratio is a financial ratio of a company. The PEG (price, earnings, growth) ratio compares the PE (price/earnings) ratio to the growth rate, which can be either historical PE ratios and growth rates or estimated future rates. A lower ratio is "better" ("cheaper") and a higher ratio is "worse" ("expensive"). ...more on Wikipedia about "PEG ratio"

The price/cash flow ratio (also called price-to-cash flow ratio or P/CF), is a ratio used to compare a company's market value to its cash flow. It is calculated by dividing the company's market cap by the company's operating cash flow in the most recent fiscal year (or the most recent four fiscal quarters); or, equivalently, divide the per-share stock price by the per-share operating cash flow. In theory, the lower a stock's price/cash flow ratio is, the better value that stock is. ...more on Wikipedia about "Price/cash flow ratio"

The price to equity ratio (price/equity or price/"book") is the price per share divided by the shareholders' equity per share. Or the market cap divided by shareholders' equity. ...more on Wikipedia about "Price/equity ratio"

Price-to-sales ratio or P/S ratio, is a ratio used to compare a company's market value to its revenue. It is calculated by dividing the company's market cap by the company's revenue in the most recent fiscal year (or the most recent four fiscal quarters); or, equivalently, divide the per-share stock price by the per-share revenue. ...more on Wikipedia about "Price/sales ratio"

Return on Assets = ( Net Profit Margin) / ( Total Asset Turnover) ...more on Wikipedia about "Return on assets"

Return on capital, also known as Return On Invested Capital (ROIC) is defined as ...more on Wikipedia about "Return on capital"

Return on common Equity (ROE, Return on average common equity) - earnings before extraordinary items, less preferred-share dividends, divided by average common shareholders' equity. Shows the rate of return on the investment for the company's common shareholders, the only providers of capital who do not have a fixed return. ...more on Wikipedia about "Return On Equity"

ROIC is expressed as a percentage and often confused with Return on Capital. ...more on Wikipedia about "Return on Invested Capital"

In finance, the return on investment (ROI) or just return is a calculation used to determine whether a proposed investment is wise, and how well it will repay the investor. It is calculated as the ratio of the amount gained (taken as positive), or lost (taken as negative), relative to the basis. ...more on Wikipedia about "Return on investment"

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