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...
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...
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...
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, 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 (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...
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) 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...