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‘Fundamental Analysis’ News

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PEG ratio

Tuesday, May 26, 2009 12:47

The PEG ratio is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company’s expected future growth. It is a ratio used to determine a stock’s value...

Price/cash flow ratio

Tuesday, May 26, 2009 12:45

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. Because this measure deals with cash flow, the effects of depreciation and other non-cash factors...

P/B or P/BV ratio

Tuesday, May 26, 2009 12:43

The Price-to-book ratio, or P/B ratio, is a financial ratio used to compare a company’s book value to its current market price. It is calculated as share price divided by book value per share. Book value is most often calculated...

P/E ratio

Tuesday, May 26, 2009 12:16

The P/E ratio (price-to-earnings ratio) of a stock is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. It is a financial ratio used for valuation:...

Operating margin

Tuesday, May 26, 2009 12:13

Operating margin, also known as “operating profit margin” or “net profit margin”, is a ratio used to measure a company’s pricing strategy and operating efficiency. It is a measurement of what proportion of a company’s revenue is left over after...

Operating cash flow

Tuesday, May 26, 2009 12:12

Operating cash flow (OCF), usually more formally described in accounts as “cash inflow from operating activities”, is the amount of actual cash made by a company’s business, generally defined as revenues less all operating expenses, but calculated through a series...

Gross Profit

Sunday, May 24, 2009 16:57

The gross profit is the total revenue subtracted by the cost of generating that revenue. It tells you how much money a business would have made if it didn’t pay any other expenses such as salary, income taxes, etc. The...

Earnings Before Interest, Taxes, Depreciation and Amortization – EBITDA

Friday, May 22, 2009 22:00

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) is an approximate measure of a company’s operating cash flow based on data from the company’s income statement. It is calculated as follows by looking at earnings before the deduction of interest...