Valuation Measures
Enterprise
Value/EBITDA
Formula: Enterprise Value / EBITDA
Firm
value compared against EBITDA (Earnings before interest, taxes, depreciation,
and amortization).
Enterprise
Value
Formula: Market Cap + Total Debt - Total Cash & Short
Term Investments
EV is a measure of theoretical takeover price, and is
useful in comparisons against income statement line items above the interest
expense/income lines such as revenue and EBITDA.
Enterprise
Value/Revenue
Formula: Enterprise Value / Total
Revenues
Firm value compared against revenue. Provides a more rigorous
comparison than the Price/Sales ratio by removing the effects of capitalization
from both sides of the ratio. Since revenue is unaffected by the interest
income/expense line item, the appropriate value comparison should also remove
the effects of capitalization, as EV does.
Forward P/E
Ratio
Formula: Current Market Price / Projected Earnings Per
Share
A valuation ratio calculated by dividing the current market price
by projected 12-month Earnings Per Share.
Market
Cap
Formula: Current Market Price Per Share x Number of Shares
Outstanding
The total dollar value of all outstanding shares. Computed
as shares times the current market price. Capitalization is a measure of
corporate size.
PEG Ratio
Formula: P/E Ratio /
5-Yr Expected EPS Growth
Forward-looking measure rather than typical
earnings growth measures, which look back in time (historical). Used to measure
a stock's valuation against its projected 5-yr growth
rate.
Price/Book Ratio
Formula: Current Market
Price / Book Value Per Share
A valuation ratio calculated by dividing
the current market price by the most recent quarter's (mrq) Book Value Per
Share.
Price/Sales Ratio
Formula: Current Market
Price / Total Revenues Per Share
A valuation ratio calculated by
dividing the current market price by trailing 12-month (ttm) Total Revenues.
Often used to value unprofitable companies.
Trailing P/E
Ratio
Formula: Current Market Price / Earnings Per
Share
A popular valuation ratio calculated by dividing the current
market price by trailing 12-month (ttm) Earnings Per Share.
Financial
Highlights
Book Value Per Share
Formula:
Total Common Equity / Total Common Shares Outstanding
This is
defined as the Common Shareholder's Equity divided by the Shares Outstanding at
the end of the most recent fiscal quarter.
Current
Ratio
Formula: Total Current Assets / Total Current
Liabilities
This is the ratio of Total Current Assets for the most
recent quarter divided by Total Current Liabilities for the same
period.
Diluted EPS
Formula: (Net Income -
Preferred Dividend and Other Adjustments)/ Weighted Average Diluted Shares
Outstanding
This is the Adjusted Income Available to Common Stockholders
(based on Generally Accepted Accounting Principles, GAAP) for the trailing 12
months divided by the trailing 12 month weighted average shares outstanding.
Diluted EPS uses diluted weighted average shares in the calculation, or the
weighted average shares assuming all convertible securities are
exercised.
EBITDA
The accounting acronym EBITDA
stands for "Earnings Before Interest, Tax, Depreciation, and
Amortization."
Fiscal Year Ends
The date of the end
of the firm's accounting year.
Gross Profit
Formula: Total Revenues -
Cost of Revenues
This item represents Total Revenues minus Cost Of Goods
Sold, Total.
Levered Free Cash Flow
Formula:
(EBIT + Interest Expense) x (1 x Tax Rate) + Depreciation & Amort.,
Total + Other Amortization + Capital Expenditure + Sale (Purchase) of Intangible
assets - Change in Net Working Capital + Pref. Dividends Paid + Total Debt
Repaid + Total Debt Issued + Repurchase of Preferred + Issuance of Preferred
Stock
Where: Tax Rate = 37.5%
This figure is a normalized item that
excludes non-recurring items and also takes into consideration cash inflows from
financing activities such as debt or preferred stock
issuances.
Operating Cash Flow
Formula: Net Income
+ Depreciation and Amortization, Total + Other Amortization + Other Non-Cash
Items, Total + Change in Working Capital
Net cash used or generated in
operating activities during the stated period of time. It reflects net impact of
all operating activity transactions on the cash flow of the entity. This GAAP
figure is taken directly from the company's Cash Flow Statement and might
include significant non-recurring items.
Operating
Margin
Formula: [(Total Revenues - Total Operating Costs) /
(Total Revenues)] x 100
This item represents the difference between the
Total Revenues and the Total Operating Costs divided by Total Revenues, and is
expressed as a percentage. Total Operating Costs consist of: (a) Cost of Goods
Sold (b) Total (c) Selling, General & Administrative Expenses (d) Total R
& D Expenses (e) Depreciation & Amortization and (f) Total Other
Operating Expenses, Total. A ratio used to measure a company's operating
efficiency.
Profit Margin
Formula: (Net Income /
Total Revenues) x 100
Also known as Return on Sales, this value is the
Net Income After Taxes for the trailing 12 months divided by Total Revenue for
the same period and is expressed as a percentage.
Quarterly
Earnings Growth
Formula: [(Qtrly Net Income - Qtrly Net Income
(yr ago)) / Qtrly Net Income (yr ago)] x 100
The growth of Quarterly Net
Income from the same quarter a year ago.
Quarterly Revenue
Growth
Formula: [(Qtrly Total Revenues - Qtrly Total Revenues
(yr ago)) / Qtrly Total Revenues (yr ago)] x 100
The growth of Quarterly
Total Revenues from the same quarter a year ago.
Return on
Assets
Formula: Earnings from Continuing Operations / Average
Total Equity
This ratio shows percentage of Returns to Total Assets of
the company. This is a useful measure in analyzing how well a company uses its
assets to produce earnings.
Return on Equity
Formula:
[(Earnings from Continuing Operations) / Total Common Equity] x
100
This is a measure of the return on money provided by the firms'
owners. This ratio represents Earnings from Continuing Operations divided by
average Total Equity and is expressed as a
percentage.
Revenue
The amount of money generated by
a company's business activities. Also known as Sales.
Revenue
(Sales) Per Share
Formula: Total Revenues / Weighted Average
Shares Outstanding
Total Cash
The Total Cash and
Short-term Investments on the balance sheet as of the most recent
quarter.
Total Cash Per Share
This is the Total Cash
plus Short Term Investments divided by the Shares Outstanding at the end of the
most recent fiscal quarter.
Total Debt
Formula:
Short Term Borrowings + Current Portion of Long Term Debt + Current Portion
of Capital Lease + Long Term Debt + Long Term Capital Lease + Finance Division
Debt Current + Finance Division Debt Non Current
The Total Debt on the
balance sheet as of the most recent quarter.
Total Debt / Total
Equity
Formula: [(Long-term Debt + Capital Leases + Finance
Division Debt Non-Current + Short-term Borrowings + Current Portion of Long-term
Debt + Current Portion of Capital Lease Obligation + Finance Division Debt
Current) / (Total Common Equity + Total Preferred Equity)] x 100
This
ratio is Total Debt for the most recent fiscal quarter divided by Total
Shareholder Equity for the same period.
Trading
Information
Average Volume (3 month)
This is the
average daily trading volume during the last 3 months.
Average
Volume (10 day)
This is the average daily trading volume during the
last 10 days.
Beta
The Beta used is Beta of Equity.
Beta is the monthly price change of a particular company relative to the monthly
price change of the S&P500. The time period for Beta is usually 3-years.
Dividend Date
The payment date for a
declared dividend.
Ex-Dividend Date
The first day of
trading when the seller, rather than the buyer, of a stock is entitled to the
most recently announced dividend payment. The date set by the NYSE (and
generally followed on other U.S. exchanges) is currently two business days
before the record date. A stock that has gone ex-dividend is denoted by an x in
newspaper listings on that date.
Float
This is the
number of freely traded shares in the hands of the public. Float is calculated
as Shares Outstanding minus Shares Owned by Insiders, 5% Owners, and Rule 144
Shares.
Forward Annual Dividend Rate
The annualized
amount of dividends expected to be paid in the current fiscal
year.
Trailing Annual Dividend Rate
The sum of all
dividends paid out in the trailing 12-month period.
Payout
Ratio
The ratio of Earnings paid out in Dividends, expressed as a
percentage.
Shares Outstanding
This is the number of
shares of common stock currently outstanding—the number of shares issued minus
the shares held in treasury. This field reflects all offerings and acquisitions
for stock made after the end of the previous fiscal
period.
Shares Short
This is the number of shares
currently borrowed by investors for sale, but not yet returned to the owner/lender.
Short Ratio
This represents the number of
days it would take to cover the Short Interest if trading continued at the
average daily volume for the month. It is calculated as the Short Interest for
the Current Month divided by the Average Daily Volume.
Short % of
Float
Number of shares short divided by float.
5-Year Average Dividend
Yield
The average Forward Annual Dividend Yield in the past 5
years.
52-Week High
This price is the
highest Price the stock traded at in the last 12 months. This could be an
intraday high.
52-Week Low
This price is the lowest
Price the stock traded at in the last 12 months. This could be an intraday
low.
200-Day Moving Average
A simple
moving average that is calculated by dividing the sum of the closing prices in
the last 200 trading days by 200.
