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Market cap

A market cap is used to determine a companies size and risk tolerance. To determine the market cap take the number of shares outstanding and multiply the current stock price to recieve the market cap.

Price to sales ratio (PSR)

A ratio that compares a company's stock price to its revenues. Market cap / past earnings = psr . A low psr can can indicate a company's undervalued.

Dividend

A sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).

How are dividends paid

Add the net income at the beginning related earnings subtract the retained earnings for the end of the period for the total amount .

Shares outstanding

All shares currently owned by stockholders,company owners,and investors in the public domain.

Book value per share

Amount of money a shareholder would get if a company decided to liquidate. Book value/ shares outstanding

Revenue

Another word for income

Gross profit

Gross profit = sales revenue - cost of goods sold or(cost to make the goods )

Forward P/E

Is a measure of the price to earnings using forecasted earnings. So take the expected earnings/divided by shares outstanding to get expected earnings per share divided by market price per share.

Beta

Is the measurement of risk and volatility in a company. Companies with a low beta will experience less volatility but will a meager reward. A high beta represents high volatility but will have greater reward.

Future price to sales (psr)

Market cap / future earnings

Earnings per share (EPS)

Measurement of a company's profit. To calculate EPs take the net income - dividends / shares outstanding

Return on Assets

Net Income / Total Assets if a company has high ROA this means that the company at converting their investments into profit.

Return on Equity (ROE)

Net Income/Shareholders Equity if a company has a high roe that means the company is good at generating profits from its equity.

Operating Margin

Operating income divided net sales

Peg ratio

P/E ratio divided by expected growth percentage. A low peg ratio can be desirable depending on the company.

Diluted EPS

Profit - dividend/ shares outstanding

trailing P/E

Take the current stock price and divide by ttm earnings per share (EPS)

Book value

Tangible assets (buildings,equipment) - liabilities (debts)

Operating Income

The amount of profit left after taking out operating expenses and depreciation

Net Sales

The amount of sales generated after returns are deducted.

Total cash

The sum of all of the cash a company has on its books, including petty cash and funds on deposit in a bank

Price to book ratio

Compared the cost of a stock to the value of the company if it was broken up and sold today. P/B Ratio = Market price per share/ Book Value per share. To get book value ( total assets/ shares outstanding).

Current ratio

Current ratio = current assets / current liabilities if a company has a high current ratio that means the company financially stable and able to pay off debts. A current ratio below one is not the good

P/E ratio

Current stock price / earnings per share

EBITDA

Earnings before interest, taxes, depreciation, and amortization. Do not rely on ebitda for your investments decisions. Ebitda is there to try to make a company look good no matter what.

Enterprise Value/EBITDA

Enterprise Value divided by EBITDA more reliable to use when trying to compare companies.

Enterprise Value/Revenue

Enterprise Value= company market capitalization + total debt -cash. Is a measure of the value of a stock that compares a company's enterprise value to its revenue.

Net Income Avi to Common (ttm)

Revenue - expenses =answer Answer - preferred stockholders = what's left over for common stockholders.

Profit Margin

Revenue - expenses divided by revenue

Enterprise Value

To find enterprise value take the market cap ( dollar # per share x shares outstanding) + total debt of company - cash on hand. This shows the true value of company.

Total cash per share

Total cash divided by shares outstanding. Money used on activities such as research,purchasing assets,and making dividend payments.

Revenue per share

Total revenue/sales divided by shares outstanding the higher the ratio,the more active the company