Stockopedia Screenable Glossary

Economic Sector based upon Thomson Reuters Business Classification System (TRBC). There are 10 top level Economic Sectors including: Financials, Basic Materials, Energy, Consumer Defensive, Consumer Cyclical, Telecoms, Utilities, Healthcare, Industrials and Technology.

Industry Group according to the Thomson Reuters Business Classification Scheme. There are approximately 145 Industry Groups as contrasted to 10 Economic Sectors.

This is an up to four character field indicating the primary trading market for the company's common stock. The following are valid codes - LON (London Stock Exchange), LSS (London SEATS Market), SEA (AIM Market), OFEX (PLUS Markets)

This shows the index membership for the given stock - i.e. whether the company is a part of the FTSE 100, FTSE 350 or FTSE All Share Indices.

This shows the percentage of total Common Shares Outstanding which are freely floated on the stock exchange.

Free Float = Total Shares - Treasury Stocks - Shares held by Strategic Entities). Strategic entities means the shares held by Government Agencies, Corporations, Holding Companies and/or individuals. This is where the shares are held with the intention of gaining market share and/or having control over the company, the idea being that, generally, strategic investors do not primarily intend to earn short term gains from the shares through an increase in share price unlike, say, investment management companies.

This indicates whether this instrument is primary listed on its stock exchange. There are many dual listed companies on exchanges around the world who have their primary listing elsewhere. The Value of "Is Primary Listing" is set to either 1 or 0 where 1 indicates a primary listing.

The Risk Rating is Stockopedia’s classification of the normalised 3 year market volatility of the company’s share price.   We have designed the Risk Rating to be both a useful predictive measure of future volatility, but also a useful predictive factor for accessing the Low Volatility premium.

The five classifications (from least to most volatile) are Conservative, Balanced, Adventurous,  Speculative and Highly Speculative.   At any time 10% of the market will be classified as Conservative, 15% Balanced, 20% Adventurous, 25% Speculative and 30% Highly Speculative.  We use proprietary measures of volatility, which account for the fact that some stocks have shorter histories and/or are traded less frequently than others.

The total number of Shares that have been authorized/issued by the company, and purchased by investors. They have voting rights and represent ownership in the corporation by the person or institution that holds the shares. They should be distinguished from treasury stock, which is held by the company.

The Size Group is a classification of a stock according to its relative Market Capitalisation,  based on common heuristic cut offs for what constitutes a large or a small company. Any company with a Market Capitalisation of less than GBP 50 million is classified as a Micro Cap, less than GBP 350 million is a Small Cap, less than GBP 2.5 billion is a Mid Cap and all larger companies are Large Cap.

The StockRank Styles are an intuitive classification system based on a stock’s exposure to the Quality, Value and Momentum Ranks.  They allow an investor, at a glance, to understand the investibility of a stock and whether it suits their investing style.  

There are four Winning Styles (Super Stocks, High Flyers, Contrarian and Turnaround) and four Losing Styles (Sucker Stock, Momentum Trap, Value Trap and Falling Star).  Some stocks do not fit any style and these are classified as Neutral.

Enterprise Value represents [[Market Capitalization]] minus Cash and Equivalents plus Total Debt, Minority Interest and Preferred Stock.

This value is translated into Financial Statements Currency, rather than being in Price Currency.

Enterprise Value (EV) represents Market Capitalization plus Net Debt, and is a truer reflection of the actual size of a company than Market Cap. More specifically Net Debt includes Total Debt, Minority Interest and Preferred Stock minus Cash and Short Term Investments.

This Enterprise Value is based on the latest available figures for Debt & Cash, i.e. interim figures if these have been published since the annuals.

Enterprise Value (EV) represents Market Capitalization plus Net Debt, and is a truer reflection of the actual size of a company than Market Cap. More specifically Net Debt includes Total Debt, Minority Interest and Preferred Stock minus Cash and Short Term Investments.

This Enterprise Value is based on the latest available figures for Debt & Cash, i.e. interim figures if these have been published since the annuals.

Enterprise Value (EV) represents Market Capitalization plus Net Debt, and is a truer reflection of the actual size of a company than Market Cap. More specifically Net Debt includes Total Debt, Minority Interest and Preferred Stock minus Cash and Short Term Investments.

This Enterprise Value is based on the latest available figures for Debt & Cash, i.e. interim figures if these have been published since the annuals.

Enterprise Value (EV) represents Market Capitalization plus Net Debt, and is a truer reflection of the actual size of a company than Market Cap. More specifically Net Debt includes Total Debt, Minority Interest and Preferred Stock minus Cash and Short Term Investments.

This Enterprise Value is based on the latest available figures for Debt & Cash, i.e. interim figures if these have been published since the annuals.

Enterprise Value (EV) represents Market Capitalization plus Net Debt, and is a truer reflection of the actual size of a company than Market Cap. More specifically Net Debt includes Total Debt, Minority Interest and Preferred Stock minus Cash and Short Term Investments.

This Enterprise Value is based on the latest available figures for Debt & Cash, i.e. interim figures if these have been published since the annuals.

Enterprise Value (EV) represents Market Capitalization plus Net Debt, and is a truer reflection of the actual size of a company than Market Cap. More specifically Net Debt includes Total Debt, Minority Interest and Preferred Stock minus Cash and Short Term Investments.

This Enterprise Value is based on the latest available figures for Debt & Cash, i.e. interim figures if these have been published since the annuals.

Enterprise Value (EV) represents Market Capitalization plus Net Debt, and is a truer reflection of the actual size of a company than Market Cap. More specifically Net Debt includes Total Debt, Minority Interest and Preferred Stock minus Cash and Short Term Investments.

This Enterprise Value is based on the latest available figures for Debt & Cash, i.e. interim figures if these have been published since the annuals.

Enterprise Value (EV) represents Market Capitalization plus Net Debt, and is a truer reflection of the actual size of a company than Market Cap. More specifically Net Debt includes Total Debt, Minority Interest and Preferred Stock minus Cash and Short Term Investments.

This Enterprise Value is based on the latest available figures for Debt & Cash, i.e. interim figures if these have been published since the annuals.

This value is calculated by multiplying the current Price by the current number of Shares Outstanding. It has been adjusted to match the financial statements currency, where relevant.

The Market Cap is a measure of a company's size - or specifically its total equity valuation. It is calculated by multiplying the current Share Price by the current number of Shares Outstanding. It is stated in Euros.

The Market Cap is a measure of a company's size - or specifically its total equity valuation. It is calculated by multiplying the current Share Price by the current number of Shares Outstanding. It is stated in US Dollars.

The Market Cap is a measure of a company's size - or specifically its total equity valuation. It is calculated by multiplying the current Share Price by the current number of Shares Outstanding. It is stated in Pounds Sterling.

The Market Cap is a measure of a company's size - or specifically its total equity valuation. It is calculated by multiplying the current Share Price by the current number of Shares Outstanding. It is stated in Japanese Yen.

The Market Cap is a measure of a company's size - or specifically its total equity valuation. It is calculated by multiplying the current Share Price by the current number of Shares Outstanding. It is stated in Australian Dollars.

The Market Cap is a measure of a company's size - or specifically its total equity valuation. It is calculated by multiplying the current Share Price by the current number of Shares Outstanding. It is stated in Canadian Dollars.

The Market Cap is a measure of a company's size - or specifically its total equity valuation. It is calculated by multiplying the current Share Price by the current number of Shares Outstanding. It is stated in Indian Rupees.

The Market Cap is a measure of a company's size - or specifically its total equity valuation. It is calculated by multiplying the current Share Price by the current number of Shares Outstanding. It is stated in Singapore Dollars.

This is sales over the last 12 months, translated in Euros for all companies.

This is sales over the last 12 months, translated in US Dollars for all companies.

This is sales over the last 12 months, translated in Pounds Sterling for all companies.

This is last year's total annual sales, translated in Pounds Sterling for all companies.

This is sales over the last 12 months, translated in Japanese Yen.

This is sales over the last 12 months, translated in Australian Dollars.

This is sales over the last 12 months, translated in Canadian Dollars.

This is sales over the last 12 months, translated in Indian Rupees.

This is sales over the last 12 months, translated in Singapore Dollars.

The Stockopedia StockRank is an equally weighted combination of Stockopedia's:

1) Value Rank

2) Quality Rank

3) Momentum Rank

We calculate these ranks for every company in the market, sum them and then re-rank the output from 0 (worst) to 100 (best). The stock showing the highest Composite StockRank will have the highest score across all 3 contributing ranks.

We discuss the StockRank in depth here.

The Stockopedia Quality Rank is a blend of ratios and factors pertaining to company cashflow, profitability and stability. The full definition of the Quality Rank is available here.

The Stockopedia Value Rank is a weighted blend of traditional value and relative value ratios to rank all stocks in the market between zero (worst) and 100 (best). The full definition of the Value Rank is available here

The Stockopedia MomentumRank is a blend of price and earnings momentum factors. The full definition of the MomentumRank is available here.

The Stockopedia GrowthRank is a blend of historic and forecast earnings and sales growth ratios. The full definition of the GrowthRank is available here.

The CompositeRank is an equally weighted combination of Stockopedia's:

1) ValueRank

2) GrowthRank

3) QualityRank

4) MomentumRank

We calculate these ranks for every company in the market, sum them and then re-rank the output from 0 (worst) to 100 (best). The stock showing the highest CompositeRank will have the highest score across all 4 contributing ranks.

We discuss the CompositeRank in depth here.

The Stockopedia QV Rank is an equally weighted combination of Stockopedia's:

1) Quality Rank

2) Value Rank

We calculate these ranks for every company in the market, sum them and then re-rank the output from 0 (worst) to 100 (best). The stock showing the highest QV Rank will have the highest score across both contributing ranks.

We discuss the StockRanks in depth here here.

The Stockopedia VM Rank is an equally weighted combination of Stockopedia's:

1) Value Rank

2) Momentum Rank

We calculate these ranks for every company in the market, sum them and then re-rank the output from 0 (worst) to 100 (best). The stock showing the highest VM Rank will have the highest score across both contributing ranks.

We discuss the StockRanks in depth here here.

The Stockopedia QM Rank is an equally weighted combination of Stockopedia's:

1) Quality Rank

2) Momentum Rank

We calculate these ranks for every company in the market, sum them and then re-rank the output from 0 (worst) to 100 (best). The stock showing the highest QM Rank will have the highest score across both contributing ranks.

We discuss the StockRanks in depth here here.

The Stockopedia GM Rank is an equally weighted combination of Stockopedia's:

1) Growth Rank

2) Momentum Rank

We calculate these ranks for every company in the market, sum them and then re-rank the output from 0 (worst) to 100 (best). The stock showing the highest GM Rank will have the highest score across both contributing ranks.

We discuss the StockRanks in depth here here.

The Bid-Offer Spread, also known as the Bid-Ask Spread, relates to the quote of the price at which participants in a market are willing to buy or sell a stock or security. The bid price is the price at which a party is willing to purchase, while the ask (or offer) price is the price at which someone is willing to sell.

The Spread is measured in basis points versus the mid-point price. It is calculated as being (ask - bid) / (midpoint price) * 10000.

A basis point is a unit of measure used describe the percentage change in a value. One basis point is equivalent to 0.01% (1/100th of a percent), so 100 basis points is 1 percent.

This is a proprietary volume metric that aims to assess the recent volume trend. It compares the average daily volume of the last 10 trading days with the average daily volume of the last 3 months expressed as a percentage.

This is calculated as (the 10 day average volume divided by the 3 month average volume) minus 1 * 100, i.e. the ratio will be negative to the extent that the average daily volume over the last 3 months exceeds the average over the last 10 days.

This measures the share price vs. the 130 Day Moving Average (130d MA) expressed as a percentage difference. A negative number indicates a share price trading below the 130d MA

The 130d MA is a long term moving average calculated by dividing the sum of the security's average closing price over the last 130 trading days by 130. It is effectively the 6 month or 26 week moving average.

This measures the share price vs. the 200 Day Moving Average (200d MA) expressed as a percentage difference. A negative number indicates a share price trading below the 200d MA

The 200d MA is a long term moving average calculated by dividing the sum of the security's average closing price over the last 200 days by 200.

This measures how far the last close price is from the 50 Day Moving Average. The 50 Day Moving Average is a stock price average over the last 50 days which often acts as a support or resistance level for trading. A negative number indicates a share price trading below the 50d MA

This is calculated as (Close Price - 50 Day MA) / 50 Day MA * 100.

This measures the security's 50 day Moving Average price divided by the 200 day Moving Average price.

Work by Seung-Chan Park has shown that companies whose 50d MA is far above the 200d MA significantly outperform those companies where the 50d MA is below the 200d MA.

This measures the absolute percentage price performance of the share price over the past one month. It is to be contrasted with [[Relative Strength]].

It is calculated as (Current Price minus Old Price) divided by Old Price x 100.

This measures the absolute percentage price performance of the share price over the past one week. It is to be contrasted with [[Relative Strength]].

It is calculated as (Current Price minus Old Price) divided by Old Price x 100.

This measures the absolute percentage performance of the share price over the past one year. It is to be contrasted with [[Relative Strength]].
It is calculated as (Current Price minus Old Price) divided by Old Price x 100.

This measures the absolute percentage performance of the share price over the past three months.

This measures the absolute percentage performance of the share price over the past three years.
It is calculated as (Current Price minus Old Price) divided by Old Price x 100.

This measures the absolute percentage performance of the share price over the past five years.
It is calculated as (Current Price minus Old Price) divided by Old Price x 100.

This measures the absolute percentage performance of the share price over the past six months.

It is calculated as (Current Price minus Old Price) divided by Old Price x 100.

The Price vs. 10 Yr High indicator compares the current price to the highest price at which the stock has traded at in the last 10 years.

The Price vs. 52 Week High indicator compares the current price to the highest price at which the stock has traded at in the last 52 weeks (12 months), ie. the formula is : Current Price - 52 week High / 52 Week High.

To screen for companies that are within 10% of their 52wk high, the criteria would be Price vs. 52 Week High > -10 (i.e. greater / less negative than -10%). Here's a sample screen that you can fork.

Alternatively, if you wanted to set an alert for when a stock has fallen more than 20% below its high, you would set it for Price vs. 52 Week High < -20. Although the targeted value is numerically greater than 20, because it's a negative number, it needs to be shown as "less than".

This compares the current price to the lowest Price the stock has traded at in the last 12 months expressed as a percentage.

To screen for companies that are within 10% of their 52wk Lw, the criteria would be Price vs. 52 Week Low < 10, rather than greater than 90, i.e. it's a comparison rather than a rank. Here's a sample screen that you can fork.

This is the daily average of the cumulative trading volume for the last 10 days on which there was volume traded for the stock. We look back at most 20 days in order to find the 10 most recent days of trading and, if there are not 10 days of active trading within that period, we return a null figure.

We do this to ensure that the volume information used in the figure is relevant and reflective of current trading conditions on the stock.

A 200-day moving average is calculated by taking the closing prices for the last 200 days of any security, summing them together and dividing by 200. The 200 Day Moving Average is a long term moving average that helps determine the overall health of a stock. A stock that is trading below its 200 Day Moving Average is considered to be in a long term downtrend, whereas a stock that is trading above its 200 Day Moving Average is in a long term uptrend. This metric is calculated in the same units and currency as the Quote price for each instrument.

This is the daily average of the cumulative trading volume during the last three months.

As an example, the 3 month average volume of Vodafone, admittedly a mega-cap, as of May 15th 2015 was 59,376,983.

This price is the highest Price the stock traded over a 12 month period. It is calculated by taking the Max of all closing prices within the trading year. It doesn't factor in intra-day movements. This field is the same currency and units as the Quote price for this instrument.

This price is the lowest Price the stock traded over a 12 month period. It is calculated by taking the Minimum of all closing prices within the trading year. It doesn't factor in intra-day movements. This field is the same currency and units as the Quote price for this instrument.

Beta is a measure of a company's common stock price volatility relative to the market. It is calculated as the slope of the 60 month regression line of the percentage price change of the stock relative to the percentage price change of the relevant index (e.g. the FTSE All Share). Beta values are not calculated if less than 24 months of pricing is available.

You can read more about our calculation here.

This is the last close price of the company's shares on the relevant stock exchange.

This measures the average / compound annualised growth of the share price over the past five years.

It is calculated as Current Price divided by Old Price to the power of a 5th, multiplied by 100.

For how many consecutive years has the company been priced on the stock exchange?

1 month Relative Strength measures a stock's price change over the last month relative to the price change of a market index. It shows the relative outperformance or underperformance of the stock in that timeframe. Different benchmarks are used for different geographic markets which can be reviewed here.

It is calculated dividing the price change of a stock by the price change of the index for the same time period. e.g. A stock falling by 20% versus an index rising 20% would lead to a Relative strength calculation of 100 * ( 80/120 - 1) = -33%

1 week Relative Strength measures a stock's price change over the last week relative to the price change of a market index. It shows the relative outperformance or underperformance of the stock in that timeframe. Different benchmarks are used for different geographic markets which can be reviewed here.

It is calculated dividing the price change of a stock by the price change of the index for the same time period. e.g. A stock falling by 20% versus an index rising 20% would lead to a Relative strength calculation of 100 * ( 80/120 - 1) = -33%

1 year Relative Strength measures a stock's price change over the last year relative to the price change of a market index. It shows the relative outperformance or underperformance of the stock in that timeframe. Different benchmarks are used for different geographic markets which can be reviewed here.

It is calculated dividing the price change of a stock by the price change of the index for the same time period. e.g. A stock falling by 20% versus an index rising 20% would lead to a Relative strength calculation of 100 * ( 80/120 - 1) = -33%

3 month Relative Strength measures a stock's price change over the last three months relative to the price change of a market index. It shows the relative outperformance or underperformance of the stock in that timeframe. Different benchmarks are used for different geographic markets which can be reviewed here.

It is calculated dividing the price change of a stock by the price change of the index for the same time period. e.g. A stock falling by 20% versus an index rising 20% would lead to a Relative strength calculation of 100 * ( 80/120 - 1) = -33%

3 year Relative Strength measures a stock's price change over the last three years relative to the price change of a market index. It shows the relative outperformance or underperformance of the stock in that timeframe. Different benchmarks are used for different geographic markets which can be reviewed here.

It is calculated dividing the price change of a stock by the price change of the index for the same time period. e.g. A stock falling by 20% versus an index rising 20% would lead to a Relative strength calculation of 100 * ( 80/120 - 1) = -33%

5 year Relative Strength measures a stock's price change over the last five years relative to the price change of a market index. It shows the relative outperformance or underperformance of the stock in that timeframe. Different benchmarks are used for different geographic markets which can be reviewed here.

It is calculated dividing the price change of a stock by the price change of the index for the same time period. e.g. A stock falling by 20% versus an index rising 20% would lead to a Relative strength calculation of 100 * ( 80/120 - 1) = -33%

6 month Relative Strength measures a stock's price change over the last 6 months relative to the price change of a market index. It shows the relative outperformance or underperformance of the stock in that timeframe. Different benchmarks are used for different geographic markets which can be reviewed here.

It is calculated dividing the price change of a stock by the price change of the index for the same time period. e.g. A stock falling by 20% versus an index rising 20% would lead to a Relative strength calculation of 100 * ( 80/120 - 1) = -33%

This is a proprietary measure of the annualised volatility of a company's dailiy share price movement. We adjust volatilities for auto-correlation to ensure stocks with anomalously low trading frequencies do not dominate low volatility ratings.

This measures total assets growth - it is used by James Montier as a criterion for a short screen since it may suggest uncontrolled or managed capital expenditure.

Book Value - also known as net asset value - is a statement of the value of the company's assets minus the value of its liabilities. From one perspective, it is the underlying value of a company, not the market capitalisation value dictated by the supply and demand of shares.

Book Value - also known as net asset value - is a statement of the value of the company's assets minus the value of its liabilities. From one perspective, it is the underlying value of a company, not the market capitalisation value dictated by the supply and demand of shares.

This is the compound annualised growth rate of company capital expenditures over the last three years.

Capital expenditure is funds used to acquire a long-term asset, e.g. buildings, factories, equipment.

This is the growth in Total Cash plus Short Term Investments over the last 5 years.
This is a 5 year compound growth rate calculated as being: ending net value divided starting value)^/(number of years) - 1.
NOTE: This does NOT include cash equivalents that may be reported under long term assets.

For how many out of the last 10 consecutive years has the company grown dividends?

The maximum value for the streak is 9 (since it analyses the growth over the last 10 years).

The number of consecutive years the company has paid a dividend over the last 10 years (i.e. the maximum is 10).

This is the average growth in the Dividends Per Share (DPS) for the last 10 years. Dividend per share (DPS) is the total dividends paid out over an entire year (including interim dividends but not including special dividends) divided by the number of outstanding ordinary shares issued.
The CAGR formula is the following: (current year's DPS / DPS 10 years ago) ^ (1/10) - 1
If the starting year's DPS is zero, the CAGR is not defined.

This is the average growth in the Dividends Per Share (DPS) for the last 3 years. Dividend per share (DPS) is the total dividends paid out over an entire year (including interim dividends but not including special dividends) divided by the number of outstanding ordinary shares issued.
The CAGR formula is the following: (current year's DPS / DPS 3 years ago) ^ (1/3) - 1
If the starting year's DPS is zero, the CAGR is not defined.

This growth rate is the compound annual growth rate in cash dividends per share of common stock over the last 5 years. Dividend growth is a good indicator of the financial health of a company.

This measures the year on year growth of dividend payments by the company. It is calculated on a trailing twelve month basis (i.e. factoring in interims, where available - see this FAQ on TTM).

Dividend growth is a good indicator of the financial health of a company.

This figure represents the 10 year CAGR (or compound annual growth rate) of the company's diluted EPS (earnings per share).

This growth rate is the compound annual growth rate of Diluted Normalised Earnings Per Share over the last 3 years.

The CAGR formula is the following: (current year's EPS / EPS 3 years ago) ^ (1/3) - 1
NOTE: If less than 3 years are available, a 'NA' (Not Available) code will be used.

This figure represents the 5 year Compound annual growth rate (CAGR) of the company's diluted earnings per share (EPS).

The Growth in Earnings per share as a percentage change over the last trailing twelve month period. Earnings-per-share growth gives a good picture of the rate at which a company has grown its profitability.

Earnings per share growth is defined as the percentage change in normalised earnings per share over the previous 12 month period to the latest year end. It gives a good picture of the rate at which a company has grown its profitability.

The earnings per share ratio divides the net annual earnings of a company into the number of shares. Earnings-per-share growth gives a good picture of the rate at which a company has grown its profitability.

Earnings-per-share growth gives a good picture of the rate at which a company has grown its profitability. One of the important differences vs. net-income growth rates is that EPS growth reflects the dilution that occurs from new stock issuance, the exercise of employee stock options, warrants, convertible securities, and share repurchases. Stocks with higher earnings-per-share growth rates are generally more desirable than those with slower earnings-per-share growth rates.

Earnings-per-share growth gives a good picture of the rate at which a company has grown its profitability. One of the important differences vs. net-income growth rates is that EPS growth reflects the dilution that occurs from new stock issuance, the exercise of employee stock options, warrants, convertible securities, and share repurchases. Stocks with higher earnings-per-share growth rates are generally more desirable than those with slower earnings-per-share growth rates.

The earnings per share ratio divides the net annual earnings of a company into the number of shares. Earnings-per-share growth gives a good picture of the rate at which a company has grown its profitability. One of the important differences vs. net-income growth rates is that EPS growth reflects the dilution that occurs from new stock issuance, the exercise of employee stock options, warrants, convertible securities, and share repurchases. Stocks with higher earnings-per-share growth rates are generally more desirable than those with slower earnings-per-share growth rates.

This is the year-on-year percentage change in earnings per share for the last quarter (or interim period if the company reports every 6 months), versus the same period one year ago. The earnings per share figure divides the period earnings into the number of shares.
It is based on the diluted normalised EPS, which reflects the normalisation adjustments of the Reuters analysts (in the interests of comparability across the data-set). You can read more about the normalisation process here.
This figure uses weighted average of shares outstanding over the reporting period.

This is the percentage change in earnings per share for the last quarter (or interim period if the company reports every 6 months), versus the previous such same period. The earnings per share figure divides the period earnings into the number of shares.

It is based on the diluted normalised EPS, which reflects the normalisation adjustments of the Reuters analysts (in the interests of comparability across the data-set). You can read more about the normalisation process here.

This figure uses weighted average of shares outstanding over the reporting period.

This ratio measure the percentage change in EPS between successive periods. It is a rolling 1 year forecast earnings number based on the consensus of analyst's estimates. It weights this current year and next year's earnings forecasts depending on how far a company is through in its fiscal year.

See this article for further explanation of what we mean by rolling.

The earnings per share ratio divides the net annual earnings of a company into the number of shares. Earnings-per-share growth gives a good picture of the rate at which a company has grown its profitability. One of the important differences vs. net-income growth rates is that EPS growth reflects the dilution that occurs from new stock issuance, the exercise of employee stock options, warrants, convertible securities, and share repurchases. Stocks with higher earnings-per-share growth rates are generally more desirable than those with slower earnings-per-share growth rates.

For how many out of the last 5 consecutive years has the company grown EPS? This measures the consistency of the company's earnings growth.

According to Mary Buffett's "Buffetology", this can be calculated as follows:

• Calculate the EPS in year 10 by compounding the current EPS by the historical growth rate over the last 10 years.
• This forecast value can then be multiplied by the 10 year average PE ratio to provide an estimate of the price in year 10.
• If dividends are paid, an estimate of the amount of dividends paid over the 10-year period should also be added to the year 10 prices.
• This value can then be compared with the current price to determine if the expected rate of return is greater than Buffett's threshold return of 15%.

According to Mary Buffett's "Buffettology", the sustainable growth rate can be calculated by:

• Multiplying the average 10 year rate of return on equity and average retention ratio (1 - average payout ratio) to calculate the implied sustainable growth rate.
• This rate can then be used to calculate the book value per share in year 10.
• This in turn determines the 10 year EPS by multiplying the average return on equity by the projected book value per share.
• To estimate the future price, you would then multiply the earnings by the average price-earnings ratio (plus any dividends) which then (theoretically!) produces the expected return based on the current price.

Free Cash Flow is calculated from the Statement of Cash Flows as Cash From Operations minus Capital Expenditures. Unlike earnings, it omits purely paper only expenses. The FCF 5y CAGR is the compound annual growth rate in free cashflow over 5 years.

This figure represents the 10 year CAGR (or compound annual growth rate) of the company's diluted EPS (earnings per share) on a Graham basis - this means the growth between the average of years 10/9/8 and years 3/2/1, i.e the oldest 3 year average and the latest 3 year average.

Book Value - also known as net asset value - reflects the value of the company's assets minus the value of its liabilities.

Book Value - also known as net asset value - is a statement of the value of the company's assets minus the value of its liabilities. From one perspective, it is the underlying value of a company, not the market capitalisation value dictated by the supply and demand of shares.

Book Value Per Share - or Net Asset Value Per Share - is a measure of shareholder's equity determined on a per-share basis. Book value per share is calculated by subtracting liabilities and the value of any outstanding preferred stock from assets and dividing the remainder by the number of outstanding shares of stock. Book value per share reflects accounting valuation and not necessarily market valuation. However, should the company go into liquidation, the book value per share is a proxy for the value remaining for common shareholders after all debtors are paid.

Net income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period.
This is a 5 year compound growth rate calculated as being: ending net value divided starting value)^/(number of years) - 1.

Operating cash flow - or cash flow from operating activities - refers to the amount of cash a company generates from the revenues it brings in, excluding costs associated with long-term capital investment. It is similar to operating profit but excluding non-cash items and accruals. Operating cash differs from free cash flow by excluding the effect of investment activities but it does include payments for taxes or interest as well as changes in working capital (unlike [[EBITDA]]. It does not take into account any cash raised by borrowing or issuing shares (cash flow from financing). In the long-run, a business must be able to make money from its operations.

Operating income growth shows the percentage increase in operating income over the last year. This is calculated on a TTM basis, i.e. comparing TTM versus the prior TTM period.

Operating income growth shows the percentage increase in operating income over the last year.

This is the average sales of the last 3 years.

Sales growth shows the increase in sales over a specific period of time.

The CAGR formula is the following: (current year's value / value 3 years ago) ^ (1/3) - 1

NOTE: If the starting year's figure is zero, the CAGR is not defined.

Sales growth shows the increase in sales over a specific period of time. The CAGR formula is the following: (current year's value / value 5 years ago) ^ (1/5) - 1

NOTE: If the starting year's figure is zero, the CAGR is not defined.

Sales growth shows the increase in sales over a specific period of time - this is important because, as an investor, you want to know that the demand for a company's products or services will be increasing in the future. It is important to distinguish however between organic sales growth and acquisitive growth. Growth rates differ by industry and company size. Sales growth of 5-10% is usually considered good for large-cap companies, while for mid-cap and small-cap companies, sales growth of over 10% is more achievable.

This is the year-on-year percentage change in sales for the last interim period, versus one year ago.
NOTE: This figure uses weighted average of shares outstanding over the reporting period.

This is the percentage sales growth in the latest interim period vs the interim period before as a percentage.

Sales growth shows the increase in sales over a specific period of time - this is important because, as an investor, you want to know that the demand for a company's products or services will be increasing in the future. It is important to distinguish however between organic sales growth and acquisitive growth. Growth rates differ by industry and company size. Sales growth of 5-10% is usually considered good for large-cap companies, while for mid-cap and small-cap companies, sales growth of over 10% is more achievable.

Sales growth shows the increase in sales over a specific period of time - this is important because, as an investor, you want to know that the demand for a company's products or services will be increasing in the future. It is important to distinguish however between organic sales growth and acquisitive growth. Growth rates differ by industry and company size. Sales growth of 5-10% is usually considered good for large-cap companies, while for mid-cap and small-cap companies, sales growth of over 10% is more achievable.

This shows how many years consecutively the company has managed to grow its topline revenues (sales). i.e. Sales Streak = 3 shows that the company has grown its sales for the last 3 consecutive fiscal years.

The year on year change in a firm's Diluted Weighted Average Shares. If a company has been buying back shares, this number will be negative.

The 3 year growth rate of a firm's Diluted Weighted Average Shares. This is a compound growth rate calculated as being Ending Shares Outstanding value divided by the Starting Shares outstanding, to the power of N where N is the number of years (in this case, 3) - 1.

The 5 year growth rate of a firm's Diluted Weighted Average Shares. This is a compound growth rate calculated as being Ending Shares Outstanding value divided by the Starting Shares outstanding, to the power of N where N is the number of years (in this case, 5) - 1.

The Price to Earnings Ratio (also called the PE ratio) is the primary valuation ratio used by most equity investors. It is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share.

The Graham & Dodds price-to-earnings ratio, commonly known as CAPE or Shiller P/E, is a valuation measure usually applied to stocks or equity markets. It is defined as price divided by the average of ten years of earnings.

As defined in the Little Book that Beats the Market, the earnings yield compares the profit generated with the market's valuation of the company. It is defined as operating profit divided by enterprise value.

Many refer to it as the EBIT/EV (Earnings before interest and tax / Enterprise Value)/

Enterprise value is used by Greenblatt rather than market capitaliation to reflect the competing claims of debt and equity holders on the business. This penalizes companies that carry a lot of debt and little cash, and rewards firms with a lot of cash - a useful distinction not reflected in the P/E ratio.

Operating earnings are used instead of net income to eliminate the distortions caused by recognized tax benefits or goodwill write-downs that have very little to do with the company's profitability.

As defined in the Little Book that Beats the Market, the earnings yield compares the profit generated with the market valuation of the company. It is defined as operating profit divided by enterprise value. In a case where the company has a negative Entreprise Value (i.e. it's trading for less than net cash), we use 1 as the Entreprise Value so that the Earnings Yield becomes the Operating Income.

EV to Operating Profit (or EV to EBIT) is similar to EV/EBITDA, with which it shares the advantage of valuing a company regardless of its capital structure. It is less commonly used since it doesn't add back depreciation and amortisation. This is calculated on a trailing twelve months basis.

Enterprise Value to Free Cash Flow compares the total valuation of the company with its ability to generate cashflow. It is the inverse of the [[Free Cash Flow Yield]]. The lower the ratio of enterprise value to the free cash flow figures, the faster a company can pay back the cost of its acquisition or generate cash to reinvest in its business.

FCF is calculated on a TTM basis.

Enterprise Value/Sales is a financial ratio that compares the total value of the company to its sales.

EV/EBITDA stands for [[Enterprise Value]] to Earnings before Interest, Taxes, Depreciation and Amortisation (and Exceptionals). It is similar to - and often used in conjunction with - the [[PE Ratio]] but it is capital structure-neutral by including debt and taking earnings before the payment of interest.

It is calculated on a TTM basis.

This is a scoring system developed by Benjamin Graham and aeronautical engineer James Rea. It scores stocks out of 10 depending on how many tests they pass across 5 valuation and 5 risk measures.

As defined in the Intelligent Investor, the classic book on Value Investing by Benjamin Graham, this ratio is defined as the PE Ratio multiplied by the Price to Book Ratio.

This is Stockopedia's version of the Magic Formula as defined in Joel Greenblatt's bestselling book "The Little Book that Beats the Market". You can learn more about the Magic Formula in this article and also in our Magic Formula FAQ.

This is Stockopedia's version of Joel Greenblatt's Magic Formula expressed as a perhaps more understandable percentile ranking where zero is worst and 100 is best. For example if you wanted to screen for the 10% best ranking stocks in the market you would set:

Magic Formula Rank % > 90

Also known as cash flow-to-enterprise value, this ratio gives us a sense of the amount of cash a company is generating each year relative to the total value (both debt and equity) investors have placed on the firm. All things being equal, the higher this ratio, the more cash a company generates for its investors.

This is calculated on a TTM basis.

The Price to Earnings Ratio (also called the PE ratio) is the primary valuation ratio used by most equity investors. It is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share.A hig P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back the purchase price, ignoring inflation. Unlike the [[EV/EBITDA]] multiple which is capital structure-neutral, the price-to-earnings ratio reflects the capital structure of the company in question. The reciprocal of the P/E ratio is known as the [[earnings yield]].

The Price to Earnings Ratio (also called the PE ratio) is the primary valuation ratio used by most equity investors. It is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share.A hig P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back the purchase price, ignoring inflation. Unlike the [[EV/EBITDA]] multiple which is capital structure-neutral, the price-to-earnings ratio reflects the capital structure of the company in question. The reciprocal of the P/E ratio is known as the [[earnings yield]].

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 and is a key metric for value investors. Book value denotes the portion of the company held by the shareholders; in other words, the company's assets less its total liabilities. This is calculated as the Current Price divided by the latest annual Book Value Per Share (The inverse ratio is known as book to market). We exclude preferred shares in the calculation of Book Value.

As with most ratios, it varies a fair amount by industry (companies that require more infrastructure capital will usually trade at P/B ratios much lower than, for example, consulting firms). P/B ratios are often used to compare banks, because most assets and liabilities of banks are constantly valued at market values. This version includes intangible assets and goodwill, unlike price to tangible book value. The price / book value ratio rarely falls below 1

This ratio compares the share price to the cash per share held by a company on its balance sheet. Please note that firms with positive ratios of cash to price per share may have negative ratios once short-term liabilities are considered.

Price to Cash net of Current Liabilities is calculated by dividing the Market Capitalisation by Total Cash (i.e. Cash & Short Term Investments) minus Current Liabilities. This ratio will be 0 if the company has net liabilities (i.e. it doesn't have enough cash at hand to cover liabilities falling due within one year) and positive if it has net cash.

Price to Cash Flow Growth is a ratio which is similar to the PEG Ratio but which is focused on cashflow, rather than earnings, growth. It divides the market value by the operating cash flow and then by the cash-flow growth rate. This may be preferable as operating cash flow is less volatile and harder to fake than earnings, although [[EV to Free Cash Flow Growth]] is likely to be better since enterprise value penalizes debt and rewards cash.

The Price to Earnings Ratio (also called the PE ratio) is the primary valuation ratio used by most equity investors. It is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share.A hig P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back the purchase price, ignoring inflation. Unlike the [[EV/EBITDA]] multiple which is capital structure-neutral, the price-to-earnings ratio reflects the capital structure of the company in question. The reciprocal of the P/E ratio is known as the [[earnings yield]].

The Price to Earnings Ratio (also called the PE ratio) is the primary valuation ratio used by most equity investors. It is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share.A hig P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back the purchase price, ignoring inflation. Unlike the [[EV/EBITDA]] multiple which is capital structure-neutral, the price-to-earnings ratio reflects the capital structure of the company in question. The reciprocal of the P/E ratio is known as the [[earnings yield]]. For each of 5 years, we take the average share price for each year up to the annual results date, then divide by the average of the EPS for that annual result, and the previous annual result. We then calculate the average of all 5 values.

The Price to Earnings Ratio (also called the PE ratio) is the primary valuation ratio used by most equity investors. It is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share.A hig P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back the purchase price, ignoring inflation. Unlike the [[EV/EBITDA]] multiple which is capital structure-neutral, the price-to-earnings ratio reflects the capital structure of the company in question. The reciprocal of the P/E ratio is known as the [[earnings yield]].

The Price to Earnings Ratio (also called the PE ratio) is the primary valuation ratio used by most equity investors. It is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share.A hig P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back the purchase price, ignoring inflation. Unlike the [[EV/EBITDA]] multiple which is capital structure-neutral, the price-to-earnings ratio reflects the capital structure of the company in question. The reciprocal of the P/E ratio is known as the [[earnings yield]].

The Price to Earnings Ratio (also called the PE ratio) is the primary valuation ratio used by most equity investors. It is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share.A hig P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back the purchase price, ignoring inflation. Unlike the [[EV/EBITDA]] multiple which is capital structure-neutral, the price-to-earnings ratio reflects the capital structure of the company in question. The reciprocal of the P/E ratio is known as the [[earnings yield]].

The Price to Earnings Ratio (also called the PE ratio) is the primary valuation ratio used by most equity investors. It is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share. A high P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back the purchase price, ignoring inflation.

This is a rolling ratio which means that it weights FY1 and FY2 forecasts depending on how far a company is through its reporting period. This makes apples and oranges more comparable - otherwise you might be comparing one company on a forecast P/E for a company reporting tomorrow with a company reporting in 11 months!

The Price to Earnings Ratio (also called the PE ratio) is the primary valuation ratio used by most equity investors. It is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share.A hig P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back the purchase price, ignoring inflation. Unlike the [[EV/EBITDA]] multiple which is capital structure-neutral, the price-to-earnings ratio reflects the capital structure of the company in question. The reciprocal of the P/E ratio is known as the [[earnings yield]].

This is the share price of the company divided by the free cash flow. Free cashflow is the operating cashflow minus capital expenditures. A more detailed definition would be (Earnings before interest and taxes * (1-Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - Capital Expenditure)

Price to NCAV compares the current price to the [[Net Current Asset Value]] which equals the companies current assets minus its total liabilities. This gives an additional margin of safety versus [[Price to Book Value]] - on this valuation measure, one is essentially paying nothing for all the fixed assets (buildings, machinery, etc, or any goodwill items that may exist.

Price to NCAV compares the current price to the [[Net Current Asset Value]] which equals the companies current assets minus its total liabilities. This gives an additional margin of safety versus [[Price to Book Value]] - on this valuation measure, one is essentially paying nothing for all the fixed assets (buildings, machinery, etc0, or any goodwill items that may exist.

The Price to Net Cash ratio is calculated by dividing the Market Capitalisation by Total Cash (i.e. Cash and Short Term Investments) minus Total Debt as at the latest balance sheet. It will be positive if the company has Net Cash, and blank if Total Debt exceeds Total Cash. A value of less than 1 means that Net Cash exceeds the Market Capitalisation, i.e. this is a negative Entreprise Value company.

Price to Net Debt (or Cash) ratio. This ratio Is negative if the company has net debt and positive if it has net cash. This will be based on the latest financial statements and it's important to be aware of post-balance sheet event that may have reduced the cash balance, eg. an acquisition.

Price to Net Net Working Captal compares the Price to Benjamin Graham's valuation measure, [[Net Net Working Capital]] which is defined as Cash + Short Term Marketable Investments + Accounts Receivable * 75% + Inventory * 50% of Total Liabilities

A valuation metric that compares a company's market price to its level of annual operating cash flow. This is similar to the valuation measure of price-to-free cash flow but uses a looser measure of cash flow, by not deducting capital expenditures.

Operating cash flow, aka. "cash inflow from operating activities", is the amount of actual cash made by a company's business. It is similar to operating profit but without the accruals.

Price to Pre-Tax Profit per share ratio, is defined as the company's market capitalisation divided by the pre-tax profit. Pre-tax profit is operating profit minus interest and any other non-operating expenses (except taxes).

The formula is as follows: Market cap. / Pre tax profit (TTM).

This ratio is calculated on a TTM basis - see here for more explanation as to why we prefer TTM ratios.

Price to Research is market capitalisation divided by R&D expenditure. The price-to-research ratio is of most importance in research based businesses, such as pharmaceutical companies and can be useful for identifying research-led businesses that are investing significantly in development. However, a large amount of spending on R&D does not necessarily mean future profits are assured.

A price-to-sales ratio, or a stock's market price per share divided by the revenue generated by sales of the company's products and services per share. Some argue that, since sales figures are less easy to manipulate than either earnings or book value, the price-to-sales ratio is a more reliable indicator of how the company is doing. However, this measure was misused during the dot com years to promote companies with no earnings or profits.

This ratio is calculated on a Trailing Twelve Months (TTM) basis.

A price-to-sales ratio, or a stock's market price per share divided by the revenue generated by sales of the company's products and services per share. Some argue that, since sales figures are less easy to manipulate than either earnings or book value, the price-to-sales ratio is a more reliable indicator of how the company is doing. However, this measure was misused during the dot com years to promote companies with no earnings or profits.

This ratio is calculated on a Last Reported Annual basis, rather than a Trailing Twelve Months (TTM) basis.

This ratio is calculated by dividing the latest Price Close by [[Tangible Book Value per share]]. This ratio gives an idea of whether an investor is paying too much for what would be left if the company went into liquidation as it represents the hard assets of the company.

The PEG ratio (Price/Earnings to Growth ratio) is calculated by taking the historic Price to Earnings Ratio (based on last year's diluted normalised Earnings) and dividing it by the consensus forecast EPS growth for the next year.

Unlike the [[Slater]] PEG Ratio or the Rolling PEG Ratio, this version does not use rolling PE ratio and growth rates, or incorporate the additional restriction that a companies must have 4 consecutive growth periods.

The PEG ratio (Price/Earnings to Growth ratio) is a valuation metric used to measure the trade-off between a stock's price, its earnings per share (EPS), and the expected growth of the company. This figure is calculated using the current rolling PE ratio and dividing it by the 12 month forward rolling eps growth rate, if positive. If the forecast growth is negative, there will be no PEG.

This is distinct from the historic PEG and the Slater PEG which use slightly different definitions.

Jim Slater defined his own version of the Price Earnings Growth (PEG) ratio in the book 'The Zulu Principle. This version uses both forecast [[rolling PE ratio]] and forecast eps growth rates, and incorporates the additional restriction that a companies must have 4 consecutive growth periods, albeit potentially including two forecast periods.

The PEGR is the PEG ratio adjusted for risk. It is calculated as the Rolling PEG Ratio multiplied by the [[Beta]] of the share price.

The PEGY is also known as the Price/Earnings to Growth and Dividend Yield Ratio or Dividend-yield adjusted PEG Ratio.

The PEGY is also known as the Price/Earnings to Growth and Dividend Yield Ratio or Dividend-yield adjusted PEG Ratio - this is used by Peter Lynch and inversely by John Neff (who calls it the total return ratio). For stocks that pay a substantial dividend, the PEGY may be an even better measure than PEG. As with the PEG, the numbers are based on consensus analyst forecasts and therefore subject to forecasting errors. This version uses the rolling current PE Ratio and Dividend YIeld with 12m forward rolling EPS Growth rate.

This is the Price to Cash ratio, adjusted for the cash burn rate of the company.

The cash burn rate is the amount of cash spent by the company over the last year, for all companies that are generating negative free cash flow. If they are generating positive free cash blow, the cash burn will be zero.

The definition for the ratio in full, then, is the price market capitalisation of the company, divided by the current cash it has on the balance sheet minus the amount of cash it spent in the last year if free cash flow is negative.

This is the growth in Research and Development spending over the last 12 months.

This is calculated as R&D expenditures divided by total assets. R&D expense is not always broken out in a company's financials, however, so this value may be n/a in those cases.

This is calculated by dividing Research & Development Expense by total sales or revenue. R&D expense is not always broken out in a company's financials, however, so this value may be n/a in those cases.

The accrual ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

The formula is (net income - free cash flow), divided by total assets.

When free cash flow is greater than net income, cash earnings are higher than accrual earnings, and the accrual ratio is negative (good).

Cash Return On Invested Capital (CROIC or CROCI) measures how much cash a company cgenerate based on each dollar it invests into its operations. It is similar to ROIC but focuses on cash, rather than profits. CROIC = Free Cash Flow divided by Invested Capital.

Invested Capital in turn is calculated as Total Equity + Total Liabilities - Current Liabilities - Excess Cash (using the Greenblatt definition of Excess Cash as cash at hand in excess of 5% of revenues).

This is the average cashflow over the last 5 years, scaled by total assets.

Free cash flow to sales is a valuation ratio that measures a company's surplus cash flow against sales revenues. The ratio indicates how much of a company's revenue is transformed into cash.

This value measures the percent of revenue left after paying all direct production expenses. It is calculated as annual Total Revenue minus annual Cost of Goods Sold divided by annual Total Revenue and multiplied by 100. NOTE: This item is only available for Industrial and Utility companies.

This value measures the percent of revenue left after paying all direct production expenses. It is calculated as annual Total Revenue minus annual Cost of Goods Sold divided by annual Total Revenue and multiplied by 100. NOTE: This item is only available for Industrial and Utility companies.

This value measures the percent of revenue left after paying all direct production expenses. It is calculated as annual Total Revenue minus annual Cost of Goods Sold divided by annual Total Revenue and multiplied by 100. NOTE: This item is only available for Industrial and Utility companies.

Gross profit is sales less the cost of sales or cost of goods sold (COGS). It only nets off the cost of the materials or labor used to make the products sold or the services delivered. In this ratio, it is scaled by total assets.

Also known as Return on Sales, this value is the [[Net Income]] divided by [[Sales]] for the same period and expressed as a percentage. This is one of the best indicators of the company's efficiency because net profit takes into consideration all expenses of the company. Investors want the net profit margin to be as high as possible.

Also known as Return on Sales, this value is the [[Net Income]] divided by [[Sales]] for the same period and expressed as a percentage. This is one of the best indicators of the company's efficiency because net profit takes into consideration all expenses of the company. Investors want the net profit margin to be as high as possible.

Also known as Return on Sales, this value is the [[Net Income]] divided by [[Sales]] for the same period and expressed as a percentage.

Also known as Return on Sales, this value is the [[Net Income]] divided by [[Sales]] for the same period and expressed as a percentage. This is one of the best indicators of the company's efficiency because net profit takes into consideration all expenses of the company. Investors want the net profit margin to be as high as possible.

Operating profit margin, also known as return on sales (ROS) is the ratio of operating profit (the amount that is left over after the variable costs of production such as wages, and raw materials have been paid) divided by sales. A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt.

This is the average operating margin over the last 5 years. Operating profit margin, also known as return on sales (ROS) is the ratio of operating profit (the amount that is left over after the variable costs of production such as wages, and raw materials have been paid) divided by sales. A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt.

Calculated by dividing a company's annual earnings by its average total assets, ROA gives an idea as to how efficient management is at using its assets to generate earnings.

Calculated by dividing a company's annual earnings by its average total assets, ROA gives an idea as to how efficient management is at using its assets to generate earnings.

Return on Capital is used by Joel Greenblatt in his Magic Formula to measure the rate of return a business is making on the total capital used in the business. His definition uses EBIT / ([[Net Working Capital]] + [[Net Fixed assets]]).

Return on Capital is used by Joel Greenblatt in his Magic Formula to measure the rate of return a business is making on the total capital used in the business. His definition uses EBIT / ([[Net Working Capital]] + [[Net Fixed assets]]). Companies that can earn a high ROC over time generally have a special advantage that keeps competition from destroying it. This field is the 5 year average of the ROCE.

Return on Capital Employed (ROCE) compares earnings with capital invested in the company. It is similar to Return on Assets, but takes into account sources of financing.

We calculate this as Operating Income (more or less EBIT) divided by Capital Employed which we define as Fixed Assets + Working Capital or, said another way, Total Assets minus Total Current Liabilities. So, in the case of Vodafone, for example, on a TTM basis, the calculation for 2013 would be:

• TTM Operating Income 4,728
• Total Assets, Latest Reported: 142,698
• Total Current Liabilities, Latest Reported: 31,224
• ROCE, TTM: 4.24%

For the avoidance of doubt, this operating income number is stated post exceptionals because of the scope for manipulation and/or managerial subjectivity and discretion in the exceptional items number (companies tend to highlight exceptional losses but not exceptional gains).

It is also post the amortisation of intangibles, and intangibles are correspondingly included in the capital employed figure (this is debatable and there's a good Signet discussion piece on it here - but it's worth remembering that not all intangibles are goodwill and do often relate to the productive capacity of the firm). We also provide Greenblatt ROC which measures the return on tangible capital only.

Return on Capital Employed (ROCE) compares earnings with capital invested in the company. It is similar to [[Return on Assets]], but takes into account sources of financing. NOPAT is equal to EBIT * (1 - tax) -- the return on the capital employed should be measured in after tax terms. The main drawback of ROCE is that it measures return against the book value of assets so, as these are depreciated, the ROCE will increase even though cash flow is constant. This is not the case with [[ROIC]].

Return on Capital Employed (ROCE) compares earnings with capital invested in the company. It is similar to Return on Assets, but takes into account sources of financing.

We calculate this as Operating Income (more or less EBIT) divided by Capital Employed which we define as Fixed Assets + Working Capital or, said another way, Total Assets minus Total Current Liabilities.

Return on Capital is used by Joel Greenblatt in his Magic Formula to measure the rate of return a business is making on the total capital used in the business. His definition uses EBIT / ([[Net Working Capital]] + [[Net Fixed assets]]). Companies that can earn a high ROC over time generally have a special advantage that keeps competition from destroying it.

Return on equity reveals how much profit a company earned in comparison to the total amount of shareholder equity found on the balance sheet. The DuPont formula is a common way to break down ROE into three important components. Essentially, ROE will equal the net margin multiplied by asset turnover multiplied by financial leverage.

It is defined as Income available to Common Shareholders (excl Extraordinaries) divided by the Average Book Value over the period.

Return on equity reveals how much profit a company earned in comparison to the total amount of shareholder equity found on the balance sheet. The DuPont formula is a common way to break down ROE into three important components. Essentially, ROE will equal the net margin multiplied by asset turnover multiplied by financial leverage.

Return on equity reveals how much profit a company earned in comparison to the total amount of shareholder equity found on the balance sheet. This is the average ROE over the last five years.

Return on equity reveals how much profit a company earned in comparison to the total amount of shareholder equity found on the balance sheet. The DuPont formula is a common way to break down ROE into three important components. Essentially, ROE will equal the net margin multiplied by asset turnover multiplied by financial leverage.

Return on equity reveals how much profit a company earned in comparison to the total amount of shareholder equity found on the balance sheet. The DuPont formula is a common way to break down ROE into three important components. Essentially, ROE will equal the net margin multiplied by asset turnover multiplied by financial leverage.

A measure of how efficiently a company generates cash flow compared to how much capital is invested in the company. Companies seek to have a return on investment capital greater than its cost of capital.

It is calculated by taking its net operating profit after taxes and dividing by the total amount of capital invested (Invested Capital) and expressing the result as a percentage. Invested Capital in turn is calculated as Total Equity + Total Liabilities - Current Liabilities - Excess Cash (using the Greenblatt definition of Excess Cash as cash at hand in excess of 5% of revenues).

Dividend cover is the ratio of a company's earnings per share to the dividend per share. It helps indicate how sustainable a dividend is. The inverse of dividend cover is the [[Payout Ratio]].

Dividend cover is the ratio of company's net income over the dividend paid to shareholders, calculated as earnings per share divided by the dividend per share. It helps indicate how sustainable a dividend is. The inverse of dividend cover is the Payout Ratio.

See this article for further explanation of what we mean by rolling.

Dividend cover is the ratio of company's net income over the dividend paid to shareholders, calculated as earnings per share divided by the dividend per share. It helps indicate how sustainable a dividend is. The inverse of dividend cover is the Payout Ratio.

See this article for further explanation of what we mean by rolling.

This field counts whether the company paid a dividend in the last 5 years.

Dividends per share is the amount amount of dividend payment that a shareholder receives for each share held. It can be calculated by taking the total amount of dividends paid and dividing it by the total shares outstanding.

Dividends per share is the amount amount of dividend payment that a shareholder receives for each share held. It can be calculated by taking the total amount of dividends paid and dividing it by the total shares outstanding. This is the average dividend per share paid over the last 5 years.

This is the number of times that the dividend per share has been decreased during the last ten financial years.

Dividend growth is a good indicator of the financial health of a company.

Dividend growth is a good indicator of the financial health of a company.

This measures the year on year growth of dividend payments by the company.

This is the number of times that the dividend per share has been increased during the last ten financial years.

Dividend growth is a good indicator of the financial health of a company. However, some companies do not pay stock dividends at all; rather they use these excess profits to reinvest money back into the company to accelerate growth.

Dividend growth is a good indicator of the financial health of a company. However, some companies do not pay stock dividends at all; rather they use these excess profits to reinvest money back into the company to accelerate growth.

The payout ratio measures the amount of earnings paid out in dividends to shareholders. It is calculated as DPS / EPS. Investors can use the payout ratio to determine what companies are doing with their earnings. Investors seeking high current income and limited capital growth prefer companies with high Dividend payout ratio. However investors seeking capital growth may prefer lower payout ratio if capital gains are taxed at a lower rate. High growth firms in early life generally have low or zero payout ratios. As they mature, they tend to return more of the earnings back to investors. The inverse of the payout ratio is Dividend Cover, which is a more popular metric in the UK.

The dividend yield shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. It is calculated as the trailing twelve month Dividend per Share, divided by the current Price, multiplied by 100, and is stated on a net, rather than gross, basis.

The 5 year average of the dividend yield is calculated by taking the average of 5 years worth of dividend yields. For each of the 5 years, we include both the high and low dividend yield in order to account for yields varying within a given year.

The dividend yield or the dividend-price ratio on a company stock is the company's total annual dividend payments divided by its market capitalization, or the dividend per share, divided by the price per share. In this case, it is the average dividend payment over the last five years divided by the average market capitalisation in each year. Comparing this yield versus the current yield may give an indication as to whether the stock is undervalued.

The dividend yield shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. It is calculated as the historic or consensus forecast Annual Dividend per Share, divided by the current Price, multiplied by 100. This measure uses a combination of historic and current year forecast dividend per share to calculate the 'rolling current' dividend. For a precise definition of this calculation please refer to this help page.

The dividend yield shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. The rolling forecast yield is calculated using a blend of current year and next year's consensus forecast dividend per share, divided by the current Price, multiplied by 100. For a precise definition of this calculation please refer to this help page.

The dividend yield shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. This 2 year forecast rolling yield is calculated using a blend of next year and the year after's consensus forecast dividend per share, divided by the current Price, multiplied by 100. For a precise definition of this calculation please refer to this help page.

The Z-Score is a shorthand to describe the financial health of a company, and its likelihood of financial distress. If the Z Score is falling towards 1.8 then it may be a sell signal. Z1 is the Z-Score for manufacturing companies and this version is calculated based using the latest available interim financials.

The Z-Score is a shorthand to describe the financial health of a company, and its likelihood of financial distress. If the Z Score is falling towards 1.8 then it may be a sell signal. Z2 is the Z-Score for non-manufacturing companies (but excluding property/financial companies) and this version is calculated based using the latest available interim financials.

The asset/equity ratio shows the relationship of the total assets of the firm to the portion owned by shareholders. This ratio is an indicator of the company’s leverage (debt) used to finance the firm.

This is the proportion of Assets vs Equity on the latest annual balance sheet. It is a measure of the financial leverage of the company.

The M-Score is a mathematical model created by Professor Beneish that uses eight financial ratios to identify whether a company may have manipulated its earnings figures for reporting purposes. You can read a more detailed description of the Beneish M-Score here.

This version is based on the Trailing Twelve Month results - we also have a version based on annual results only, which may be more reliable given the sometimes sparse nature of interim reporting.

The M-Score is a mathematical model that uses eight financial ratios to identify whether a company may have manipulated its earnings. It is based on research from Professor Messod Beneish.

The M-Score is a mathematical model that uses eight financial ratios to identify whether a company may have manipulated its earnings. It is based on research from Professor Messod Beneish.

The M-Score is a mathematical model created by Professor Beneish that uses eight financial ratios to identify whether a company may have manipulated its earnings figures for reporting purposes.

You can read a more detailed description of the Beneish M-Score here.

This measures the proportion of a company's assets that are made up for cash and short term investments. It is more commonly used to analyse funds and investment trusts.

This is the ratio of Total Current Assets divided by Total Current Liabilities for the same period. NOTE: This item is Not Available (NA) for Banks, Insurance companies and other companies that do not distinguish between current and long term assets and liabilities.

This ratio measures the sustainability of the debt structure based on available free cash flow.

This ratio measures the sustainability of the debt structure based on available free cash flow.

Also known as Net Gearing, this is a measure of a company's financial leverage calculated by dividing its net liabilities by stockholders' equity. The formula is : (Total Debt - Cash) / Book Value of Equity (incl. goodwill and intangibles)

It uses the book value of equity, not market value as it indicates what proportion of equity and debt the company has been using to finance its assets.

If the value is negative, then this means that the company has net cash, i.e. cash at hand exceeds debt.

Also known as Net Gearing, this is a measure of a company's financial leverage calculated by dividing its net liabilities by stockholders' equity.

The formula is : Net Debt - Cash / (Book Value of Equity - Intangibles)

It uses the book value of equity, not market value as it indicates what proportion of equity and debt the company has been using to finance its assets.

The Net Gearing inc Pension Deficit ratio shows the Net Gearing of a company once the Pension Deficit (or Surplus) has been taken into account. It is computed as Net Debt, plus the Pension Deficit, divided by Book Value. The figure is as of the most recent set of annual accounts.

Also known as Gearing, this is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.

The formula is : Total Debt / Book Value of Equity

It uses the book value of equity, not market value as it indicates what proportion of equity and debt the company has been using to finance its assets. It includes intangibles.

This is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.

The formula is : Total Debt / (Book Value of Equity - Goodwill and intangibles)

It uses the book value of equity, not market value as it indicates what proportion of equity and debt the company has been using to finance its assets.

The Gross Gearing inc Pension Deficit ratio shows the Gross Gearing of a company once the Pension Deficit (or Surplus) has been taken into account. It is computed as Total Debt, plus the Pension Deficit, divided by Book Value. The figure is as of the most recent set of annual accounts.

Also known as Times Interest Earned, this is the ratio of Operating Income for the most recent year divided by the Total Non-Operating Interest Expense, Net for the same period.

If Total Interest Expense, Net for the period is less or equal 0 (i.e. the equivalent of Interest Income), then we set Interest Coverage to a value of 100x - this is somewhat arbitrary but it ensures that these companies will also pass a high interest coverage screen.

If a company is loss-making, we still calculate this ratio - the figure will therefore be negative.

NOTE: This item is not meaningful for Banks and Insurance companies.

You can read more about it here in the FAQ Centre.

Long-Term Debt represents debt with maturities beyond one year. Long-Term Debt may consist of long-term bank borrowings, bonds, convertible bonds, etc.

Long-Term Debt includes: 1) Bonds (convertible or not; secured and unsecured), debentures, long-term bank borrowings, long-term notes payable, mortgage loans, senior debt, subordinated notes 2) Debts/borrowings from or notes payable to shareholders, officers, directors, employees 3) Financial Derivatives for Financial Companies

Long-Term Debt excludes: 1) Commercial paper in banks when liabilities of a company are not delineated between current and non- current.

The long term debt-to-assets ratio is a measure of the financial leverage of the company. It tells you what percentage of the assets is financed by long term debt. Long-term debt is debt due for repayment in over 12 months and is not included in the current liabilities figure on the balance sheet. It includes mortgages and long-term leases, but not general trading liabilities.

The ratio is calculated by taking the company's long-term debt and dividing it by the book value of common equity. The greater a company's leverage, the higher the ratio. Generally, companies with higher ratios are thought to be more risky.

James Montier aimed to create a simple scoring system that would highlight companies that may be 'cooking the books'. The C-Score was the result.

An analogue to the Piotroski, it measures six inputs in a binary fashion to create a score between zero and six. Inputs include: the divergence between net income and cash-flow, increasing days sales outstanding, increasing days sales of inventory, increasing current assets to revenues, declining depreciation relative to PPE and high total asset growth.

This is the ratio of Net Debt to the Market Capitalisation of the company. This ratio Is negative if the company has net debt and positive if it has net cash. This will be based on the latest financial statements and it's important to be aware of post-balance sheet event that may have reduced the cash balance, e.g. an acquisition.

Net Debt to Tangible Assets is a measure of the extent to which a company's assets are financed by debt. It is, therefore, a measure of its financial risk - the higher the ratio, the greater risk will be associated with the firm's operation. In addition, high debt to assets ratio may indicate low borrowing capacity of a firm, which in turn will lower the firm's financial flexibility.

This version excludes intangibles and goodwill.

This shows the ratio of a Pension Deficit to the Market Cap of the associated company. It is computed by dividing the Plan Deficit by the company's Market Cap. The Deficit is as of the most recent set of annual accounts and the Market Cap is the current Market Cap.

The Piotroski F-Score is a nine-criteria scoring system developed by financial academic, Joseph Piotroski in a famous research paper. Each of the nine points relate to the change in a ratio based on the company's accounts. For a full definition please Read this Article

This is the proportion of Tangible Assets vs Equity on the latest annual balance sheet. It is a measure of the financial leverage of the company.

This is the change in the consensus recommendation over the last month. The value is defined using the rather unintuitive number based system from Thomson Reuters where 1= strong buy, and 5 = strong sell. (The full range is: strong buy, outperform, hold , underperform, strong sell)

Negative numbers for this change in recommendation indicate improving sentiment.

• e.g. Change in Cons. Rec = 4, this indicates that in the last month the Cons. Rec has gone from strong buy to strong sell (1 to 5)
• e.g. Change in Cons. Rec = -1, this indicates that in the last month the Cons. Rec has moved towards buy by a single step. If it was a strong sell, the stock may now be an 'underperform'. If it was a hold, the stock may now be an 'outperform'

A consensus recommendation for an individual stock compiles ratings from a number of analysts who track that stock. The recommendation is expressed as a median of the separate recommendations.

Scaled unexpected earnings is a means of comparing the level of earnings surprise to the amount of disagreement between various analysts (since a wide range of expectations has different implications for what is “unexpected”). This is done by dividing the percentage earnings surprise by the standard deviation of analyst earnings forecasts.

Thus, if the earnings surprise is £0.05 and the standard deviation of analyst estimates was £0.03, the scaled earnings surprise is £0.05/£0.03 = 1.67.

This shows the number of analysts that are actively covering the company, i.e. they are currently providing a forecast for the next year and contributing to the next year consensus estimate.

You can read more about the Consensus Estimate here.

This measures the number of independent analyst estimates that are reflected in the Consensus Estimate.

You can read more about the Consensus Estimate here.

Consensus Recommendation of brokers on a 1-5 scale. Rather counter intuitively perhaps 1 is scored as a Strong Buy, and 5 as a Strong sell. 3 is a hold.

A consensus recommendation for an individual stock compiles ratings from a number of analysts who track that stock. The recommendation is expressed as a median of the separate recommendations.

This is the change in the broker price target over the last month expressed as a percentage.

This is the change in the broker price target over the last 3 months expressed as a percentage.

The current discount or premium to the average/consensus broker forecast price (as compiled by Thomson Reuters). Price Targets with a non-12M horizon are excluded by Reuters from the consensus price target calculations.

This is the number of Buy Recommendations by analysts covering the stocks. A Buy Recommendation generally indicates that the analyst expect that the stock should outperform other comparable stocks.

This is the number of Outperform Recommendations amongst analysts who cover the stocks. An Outperform Recommendation means that a stock is expected to do slightly better than the market return. This is also known as "moderate buy", or "accumulate".

This is the number of Hold Recommendations. A "Hold" is an analyst's opinion that can be interpreted as meaning that a stock should be kept by individuals who already own it, but should not be purchased by those who don't already. A hold recommendation is generally better than a [[Sell Recommendation]] but worse than a [[Buy Recommendation]]. It usually means that the analyst believes the stock will remain fairly stable and neither outperform or underperform the Market. Holds are also referred to as "Neutral" or "Market Perform" recommendations.

This is the number of Underperform Recommendations. This is an analyst recommendation meaning that the stock is expected to do slightly worse than the market. It is also known as [[Moderate Sell]], or [[Weak Hold]].

An analyst recommendation to sell a stock, generally indicating that the stock should underperform other comparable stocks.

This shows the total count of Earnings Estimate Downgrades from brokers/analysts in the last week. It should be contrasted with EPS Upgrades.

This shows the total count of Earnings Estimate Downgrades from brokers/analysts in the last month. It should be contrasted to [[EPS Upgrades]].

This shows the total count of Earnings Estimate Upgrades from brokers/analysts in the last month. It should be contrasted to EPS Downgrades.

This shows the total count of Earnings Estimate Upgrades (for FY2) by brokers/analysts in the last month. It should be contrasted with EPS Downgrades.

This shows the percentage EPS upgrade of consensus broker forecasts for FY1 over the past month.

FY1 means the current forecast year, so if we are in March, it would usually be the year ended next December. It does however depends when the company's year-end is (whereas this is not the case with a rolling ratio).

This shows the percentage EPS upgrade of consensus broker forecasts for FY2 over the past month.

FY2 means the next forecast year after this one. If we are in March, it would usually be the year ended the December after next December. It does however depends when the company's year-end is, i.e. they do not always end in December (this is not the case with a rolling ratio which is normalised for different year-ends).

This shows the percentage EPS upgrade of consensus broker forecasts for FY1 over the past three months.

FY1 means the current forecast year, so if we are in March, it would usually be the year ended next December. It does however depends when the company's year-end is (whereas this is not the case with a rolling ratio).

This shows the percentage EPS upgrade of consensus broker forecasts for FY2 over the past three months.

FY2 means the next forecast year after this one. If we are in March, it would usually be the year ended the December after next December. It does however depends when the company's year-end is, i.e. they do not always end in December (this is not the case with a rolling ratio which is normalised for different year-ends).

This is the first year fiscal forecast of earnings per share for the company.

This is the second year fiscal forecast of earnings per share for the company.

If a company releases a number higher or lower than the consensus (a combination of all the released estimates), this is known respectively as a positive or negative surprise.

If a company releases a number higher or lower than the consensus (a combination of all the released estimates), this is known respectively as a positive or negative surprise.

This shows how many consecutive quarters over the last 15 months (5 quarters) have seen estimate upgrades for the company.

One thing to note is that this is likely to favour companies that reports quarterly although the number of tests is the same for interim reporters, i.e. 5 tests every 3 months.

This is the consensus long-term growth rate amongst analysts which cover the company. It is a data point collated by Thomson Reuters to provide the annualised compound growth rate over the next 3 to 7 year period.

Long-term growth is an estimate of the compound average rate of growth an analyst expects over and is expressed as a percentage increase per year. It is usually calculated on Earnings per Share, but sometimes or Funds from Operations per Share, whichever is considered as primary for a particular company.

Our data providers (Reuters) explain that 'as most analysts do not provide the basis of the calculation of their growth rates, the estimates collected are assumed to include a combination of past and future years with at least one future period included, and are calculated on a compounded annual growth rate (CAGR) basis.'

If a company releases a number higher or lower than the consensus (a combination of all the released estimates), this is known respectively as a positive or negative surprise.

If a company releases a number higher or lower than the consensus (a combination of all the released estimates), this is known respectively as a positive or negative surprise.

This is the number of times that the Earnings per Shares (EPS) have increased over the last ten financial years.

This measures the amount of capital expenditure which the company incurs in order to maintain its operating assets. It is calculated as the Capital Expenditure from the Statement of CashFlows divided by the Average Shares Outstanding for the same period.

Cash per share is calculated by taking all the cash and short term investments of the company and dividing that number by the total shares outstanding. If you can find a stock trading below its cash per share, you may have a bargain, particularly if the stock has no debt or little debt. However, be careful of the ratios you see for the financial companies - the amount of cash for these companies may be much higher than in other sectors, due to the accounting of customer deposits.

Diluted EPS figure indicates the earnings per-share a business would have generated if all stock options and other sources of dilution that were currently exercisable are taken into account. This version has been normalised to exclude exceptional income and charges, better reflecting underlying results

This is Diluted Normalized EPS - 5 years ago, Reporting Currency

Diluted EPS figure indicates the earnings per-share a business would have generated if all stock options and other sources of dilution that were currently exercisable are taken into account. This version has been normalised to exclude exceptional income and charges, better reflecting underlying results

For how many out of the last 5 consecutive years has the company reported profits? Profit Streak measures the number of consecutive years within the last five years that the company has reported profits.

Free Cash Flow is calculated from the Statement of Cash Flows as Cash From Operations minus Capital Expenditures. Unlike earnings, it omits purely "paper" expenses.

Cash per share is calculated by taking all the cash and short term investments of the company and dividing that number by the total shares outstanding. If you can find a stock trading below its cash per share, you may have a bargain, particularly if the stock has no debt or little debt. However, be careful of the ratios you see for the financial companies - the amount of cash for these companies may be much higher than in other sectors, due to the accounting of customer deposits.

Operating cash flow - or cash flow from operating activities - refers to the amount of cash a company generates from the revenues it brings in, excluding costs associated with long-term capital investment. It is similar to operating profit but excluding non-cash items and accruals. Operating cash differs from free cash flow by excluding the effect of investment activities but it does include payments for taxes or interest as well as changes in working capital (unlike [[EBITDA]]. It does not take into account any cash raised by borrowing or issuing shares (cash flow from financing). In the long-run, a business must be able to make money from its operations.

Operating cash flow - or cash flow from operating activities - refers to the amount of cash a company generates from the revenues it brings in, excluding costs associated with long-term capital investment. It is similar to operating profit but excluding non-cash items and accruals.

Sales per Share is a ratio of a company's annual revenue to its average number of shares outstanding for a given year. A higher ratio is seen as indicating an active company that has successfully used its resources to produce sales.

EBITDA comprises earnings before interest, tax and depreciation. EBITDA differs from the operating cash flow in a cash flow statement primarily by excluding payments for taxes or interest as well as changes in working capital. EBITDA also differs from free cash flow because it excludes cash requirements for replacing capital assets (capex).

A method used in determining how profitable a company or business is with regard to operations. It is calculated as [[EBITDA]] (Earnings before interest, tax and depreciation) divided by [[Revenue]].

Earnings before interest, tax and depreciation divided by Total Revenue.

Diluted EPS figure indicates the earnings per-share a business would have generated if all stock options and other sources of dilution that were currently exercisable are taken into account. This version has been normalised to exclude exceptional income and charges, better reflecting underlying results

Net income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period.

Net Profit in the profit reported net of all taxes, interest and expenses. Often referred to as the 'bottom line' and used to calculate per share earnings.

Net Profit in the profit reported net of all taxes, interest and expenses. Often referred to as the 'bottom line' and used to calculate per share earnings.

Net Profit in the profit reported net of all taxes, interest and expenses. Often referred to as the 'bottom line' and used to calculate per share earnings.

Net Profit in the profit reported net of all taxes, interest and expenses. Often referred to as the 'bottom line' and used to calculate per share earnings.

Net income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period.

Net Profit in the profit reported net of all taxes, interest and expenses. Often referred to as the 'bottom line' and used to calculate per share earnings.

Net Profit in the profit reported net of all taxes, interest and expenses. Often referred to as the 'bottom line' and used to calculate per share earnings.

Net Profit in the profit reported net of all taxes, interest and expenses. Often referred to as the 'bottom line' and used to calculate per share earnings.

Net Profit in the profit reported net of all taxes, interest and expenses. Often referred to as the 'bottom line' and used to calculate per share earnings.

Operating Profit - or Operating Income - is a measure of a company's earning power from ongoing operations, calculated as the difference between operating revenues and operating expenses. When a firm has zero non-operating income, then operating income is equal to EBIT (earnings before deduction of interest payments and income taxes).

This is Operating Income - 1 year ago, Reporting Currency

This is Operating Income - 2 years ago, Reporting Currency

This is Operating Income - 3 years ago, Reporting Currency

This is Operating Income - 4 years ago, Reporting Currency

This is Operating Income - 5 years ago, Reporting Currency

Retained earnings per share refers to the portion of net income which is retained by the company rather than distributed to its owners as dividends. This is calculated by dividing [[Retained Earnings]] by the total number of [[Shares Outstanding]].

Sales (also known as revenue ) tell you the dollar amount of goods and services a company sells. This is important because it indicates the amount of money being brought in as a result of the customers' desire for whatever the company is selling.

Sales (also known as revenue ) tell you the dollar amount of goods and services a company sells. This is important because it indicates the amount of money being brought in as a result of the customers' desire for whatever the company is selling.

This is the total income that a company receives from its normal business activities, usually from the sale of goods and services to customers.
NOTE: In the case of Banks, revenue is defined as the sum of Net Interest Income and Non-Interest Income.

This is Cash and Short Term Investments at the last reported results. Cash and Equivalents represents short-term, highly liquid investments that are both readily convertible to known amounts of cash and so close to their maturity that they present insignificant risk of changes in interest rates. Only investments with original maturities of three months or less qualify under these definitions.

Short-Term Investments consists of any investments in debt and equity securities with maturity of one year or less. The ?short-term? nature depends on actual maturity of one year from the balance sheet date rather than on the original maturity of a specific investment. Short-Term Investments includes: i) Short-term loans, ii) Certificates of deposits (with maturity of 3 to 12 months), iii) Short-term paper (with maturity of 3 to 12 months), iv) Financial Derivatives and v) Trading account securities in investment services and miscellaneous financial services

NCAV equals the companies current assets minus its total liabilities. This gives an additional margin of safety versus book value - on this valuation measure, one is essentially paying nothing for all the fixed assets (buildings, machinery, etc0, or any goodwill items that may exist.

Net Debt is the sum of all short term debt, and notes payables, Long Term debt and preferred equity minus the total cash and equivalents and short term investments for the most recent reporting period.

Net Debt to Assets is a measure of the extent to which a company's assets are financed by debt. It is, therefore, a measure of its financial risk - the higher the ratio, the greater risk will be associated with the firm's operation. In addition, high debt to assets ratio may indicate low borrowing capacity of a firm, which in turn will lower the firm's financial flexibility. This version includes intangibles and goodwill.

This shows the size of a Pension Deficit or Surplus. A positive figure indicates a Deficit (Liabilities are larger than Assets) and a negative figure indicates a Surplus. The figure is as of the most recent set of annual accounts.

Working capital is calculated as current assets minus current liabilities. It is a measure of the operating liquidity available to a business. However, companies that do business on a cash basis (such as a grocery store) need very little working capital (it may even be negative such that the business is partly funded by its suppliers).

Free Cash Flow is calculated from the Statement of Cash Flows as Cash From Operations minus Capital Expenditures. Unlike earnings, it omits purely paper only "expenses".

Free Cash Flow is calculated from the Statement of Cash Flows as Cash From Operations minus Capital Expenditures. Unlike earnings, it omits purely \paper only\"\"" expenses\""\""\"""""

Free Cash Flow is calculated from the Statement of Cash Flows as Cash From Operations minus Capital Expenditures. Unlike earnings, it omits purely \paper only\"\"" expenses\""\""\"""""

Free Cash Flow is calculated from the Statement of Cash Flows as Cash From Operations minus Capital Expenditures. Unlike earnings, it omits purely \paper only\"\"" expenses\""\""\"""""

Operating cash flow - or cash flow from operating activities - refers to the amount of cash a company generates from the revenues it brings in, excluding costs associated with long-term capital investment. It is similar to operating profit but excluding non-cash items and accruals. Operating cash differs from free cash flow by excluding the effect of investment activities but it does include payments for taxes or interest as well as changes in working capital (unlike [[EBITDA]]. It does not take into account any cash raised by borrowing or issuing shares (cash flow from financing). In the long-run, a business must be able to make money from its operations.

This ratio compares operating cash flow per share (i.e. operating cash flow divided by the number of shares used to calculate EPS) with reported EPS.

It is a measure of cash conversion, i.e. the proportion of profits that are converted to cash flow.

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This field shows as a tick or cross whether the share is eligible for the UK tax free 'Individual Savings Account' wrapper - known as an ISA in the UK.