Indicators

Valuation

Intrinsic value

Compare the market value of a stock to its intrinsic equity value.

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Price / Intrinsic Value Compare a stock's market value to its Intrinsic (fair) value, calculated based on a set of methods. Price ÷ Intrinsic Value
Price / Intrinsic Value (DCF FCF) Compare a stock's market value to its Intrinsic equity value based on discounted cash flow (unlevered DCF) analysis Price ÷ Intrinsic value (DCF FCF)
Price / Intrinsic value (DCF FCF) no growth Compare a stock's market value to its Intrinsic equity value based on discounted cash flow (unlevered DCF) analysis, which uses no growth future free cash flow projections. Price ÷ Intrinsic value (DCF FCF) no growth
Price / Intrinsic value (DCF OE) Compare a stock's market value to its Intrinsic equity value based on discounted Owner Earnings (levered DCF) analysis. Price ÷ Intrinsic value (DCF OE)
Price / Intrinsic value (OE) - regression Compare a stock's market value to its Intrinsic equity value based on discounted Owner Earnings analysis using regression. Price ÷ Intrinsic Value (DCF OE) - regression
Price / Intrinsic value (Buffett) Compare a stock's market value to its Intrinsic value calculated by taking present book value and dividends (Dividend Discount Model) Price ÷ Intrinsic value (Buffett)
Price / Intrinsic value (Residual Income) Compare a stock's market value to its Intrinsic equity value using the residual income approach. Price ÷ Intrinsic value (Residual Income)
Price / Earnings Power Value Compare a stock's market value to its Earnings Power Value. Price ÷ Earnings Power Value
Price / Intrinsic value (Lynch) Compare a stock's market value to its Intrinsic Value, based on Peter Lynch's famous rule of thumb. Price ÷ Intrinsic value (Lynch)
Price / Adjusted Intrinsic value (Lynch) Compare a stock's market value to its Adjusted Intrinsic Value, based on Peter Lynch's famous rule of thumb, but adjusted to low interest rates. Price ÷ Adjusted Intrinsic value (Lynch)
Price / Intrinsic value (Graham formula) Compare a stock's market value to its Intrinsic value using the Graham formula. Price ÷ Intrinsic value (Graham formula)
Price / Intrinsic value (O'Malley formula) Compare a stock's market value to its Intrinsic value using the O'Malley formula. Price ÷ Intrinsic value (O'Malley formula)
Price / Graham number Compare a stock's market value to its Graham number. Price ÷ Graham number
Price / Intrinsic Value based on EBITDA Compare a stock's market value to its Intrinsic Value estimate based on an EV/EBITA expectation. Price ÷ Intrinsic value based on EBITDA
Margin of Safety the amount by which a company's shares are trading below their Intrinsic (fair) value. 1 − Price ÷ Intrinsic Value
Forward rate of return The return that investors buying the stock today can expect from it in the future. (Donald Yacktman) Normalised Free Cash Flow + EBITDA.6y CAGR + inflation
Adjusted Forward rate of return Forward Rate of Return adjusted with predictability of earnings growth. Forward rate of return − abs(Forward rate of return × (1 − Predictability Score)) ÷ 2)
Payback in years Number of years before the investor gets back the paid money. x for which (Market capCommon Book Value) = sum of futureYear over x future years of (slope × (futureYear − 1900) + intercept) × (1 − Marginal tax rate)

Yield on price

Income or cash flow yield, based on price and market value of the Equity.

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Revenue yield on Price The annual Revenue by the firm relative to the price. Inverse of Price per Revenue. Revenue ÷ Price
Gross Profit yield on Price The annual Gross Profit by the firm relative to the price. Gross Profit ÷ Price
Operating Income After Interest yield The Operating Income After Interest relative to the market value. Operating Income After Interest ÷ Market cap
EPS yield The annual earnings relative to price paid for a share. Inverse of Price per EPS. Earnings Per Share ÷ Price
Dividend yield How much a company pays out in dividends each year relative to its share price. Traditional Gross Dividend ÷ Price
Buyback ratio The amount of cash paid by a company for buying back its common shares over the past year, divided by its market capitalization. Common stock issued (repurchased) ÷ Market cap
Net Payout yield Shareholder return as cash paid out both as dividends and as stock buybacks. Dividend yield + Buy back ratio
Expected Return One year expected return based on price target and dividend. Price target.expected growth + Dividend yield
Debt Paydown yield The change in average of four quarters of long term debt over a company's market cap. Net Borrowings ÷ Market cap
Shareholder yield Shows how much money the company is sending back to shareholders. Net Payout yield + Debt Paydown yield
Cash Flow from Operations yield on Price The Cash Flow from Operation by the firm to equity relative to the stock price. Inverse of Price per Cash Flow from Operations. Cash Flow from Operations ÷ Price
Adjusted Earnings yield on Price The Adjusted Earnings relative to the stock price. Adjusted Earnings ÷ Price
Adjusted Free Cash Flow yield on Price The Adjusted Free Cash Flow relative to the stock price. Adjusted Free Cash Flow ÷ Price
Free Cash Flow yield on Price The Free Cash Flow relative to the stock price. Owner Earnings' ÷ Price
Normalised Free Cash Flow yield on Price The Normalised Free Cash Flow relative to the stock price. Normalised Free Cash Flow ÷ Price
Owner Earnings Yield The Owner Earnings relative to the stock price. Owner Earnings ÷ Price
Predictive Owner Earnings Yield The predictive Free Cash Flow to the Owner relative to the stock price. Predictive Owner Earnings ÷ Price
Long-term Reinvestments to Market cap Measures the relationship between a company's market capitalization and its reinvestments. Long-term Reinvestments ÷ Market cap
Short-term Reinvestments to Market cap Shows the change in working capital relative to the Market cap. Change in Working Capital ÷ Market cap
Payback ratio Ratio of Motilal Oswal, measuring in what degree 5 years of future estimated income will pay back current market value. Price ÷ Income After Tax.5y est
Price / Sales Compare a stock's market value to its revenue. The Price to Revenue ratio can vary substantially across industries; therefore, it's useful mainly when comparing similar companies. Market cap ÷ Revenue
Price / Gross profit Compares a stock's market value to its gross profit. Inverse of Net income yield. Market cap ÷ Gross profit
Price / Research Measures the relationship between a company's market capitalization and its research and development (R&D) expenditures. Market cap ÷ Research & Development
Price / EPS A valuation ratio of a company's current share price compared to its per-share earnings. Price ÷ Earnings
Price / Cash Flow from Operations Compares a company's market price to its level of 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. Market cap ÷ Cash Flow from Operations
Price / Free Cash Flow Compares the stock price to its Free cash flow to Equity Price ÷ Owner Earnings'
McLean index One of McLean's tricks as a quick guide to a share's attractiveness. Less than one is good value. Price / Sales ÷ Operating Margin
EVRG The relative trade-off between the enterprise value of a company, the revenue and the company's expected growth. (Enterprise Value / Revenue) ÷ Revenue.rCAGR 67%
PEG The relative trade-off between the price of a stock, the net profit and the company's expected growth. (Price / EPS) ÷ Net income.rCAGR 67%
PEGY The price/earnings-to-growth and dividend yield ratio demonstrates how much the market is willing to pay for earnings growth and dividend yield. By incorporating dividend yield, the PEGY ratio accounts for a companies' inclination (or disinclination) to pay out dividends. (Price / EPS) ÷ (Net income.rCAGR 67% + Dividend yield)
PFCFG The relative trade-off between the price of a stock, the Free Cash Flow and the company's expected growth. (Price / Free Cash Flow) ÷ Owner Earnings'.rCAGR 67%
ROE / PE How many units of growth one buys for a unit of P/E. Return on Equity ÷ Price / EPS
Liquidity ratio Profits to yearly trading value. The more earnings per dollar volume, the higher the probability of finding overlooked value. Net income ÷ Dollar volume

Yield on Enterprise Value

Income or cash flow yield, based on the Enterprise Value.

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Revenue yield on Enterprise Value The Revenue by the firm relative to the Enterprise Value. Inverse of EV per Revenue. Revenue ÷ Enterprise Value
Gross Profit yield on Enterprise Value Quite similar to Revenue / Enterprise Value, with the likely benefit of excluding low-gross-margin businesses from consideration. Gross Profit ÷ Enterprise Value
EBITDA yield The annual EBITDA by the firm relative to the Enterprise Value. Inverse of EV per EBITDA. EBITDA ÷ Enterprise Value
EBITA yield The annual EBITA by the firm relative to the Enterprise Value. Inverse of EV per EBITA. EBITA ÷ Enterprise Value
Adjusted Operating Income yield The adjusted Operating Income earned by the firm relative to the Enterprise Value. Inverse of EV / Adjusted Operating Income. Adjusted Operating Income ÷ Enterprise Value
Operating Income yield The annual Operating Income earned by the firm relative to the Enterprise Value. Inverse of EV / Operating Income. Operating Income ÷ Enterprise Value
EBIT yield Factor of Joel Greenblatt’s Magic Formula. The annual EBIT earned by the firm relative to the Enterprise Value. Inverse of EV / EBIT. EBIT ÷ Enterprise Value
NOPAT Yield The Net Operating Profit After Tax relative to the Enterprise Value. Net Operating Profit After Tax (NOPAT) ÷ Enterprise Value
Net income yield on Enterprise Value The Net income From Continuing Operations by the firm relative to the Enterprise Value. Inverse of Enterprise Value / Net income. Net income From Continuing Operations ÷ Enterprise Value
Cash Flow from Operations yield on EV The Cash Flow from Operations to Equity relative to the Enterprise Value. Inverse of EV per Cash Flow from Operations. Cash Flow from Operations ÷ Enterprise Value
Cash Flow After Taxes yield The annual Cash Flow After Taxes by the firm to equity, relative to the Enterprise Value. Facilitates comparing firms from different industries and with different capital structures. Cash Flow After Taxes ÷ Enterprise Value
Cash-NOPAT Yield The Cash Net Operating Profit After Tax relative to the Enterprise Value. Cash-NOPAT ÷ Enterprise Value
Free Cash Flow yield on Enterprise Value The Free Cash Flow to the firm relative to the Enterprise Value. Inverse of EV per Free Cash Flow. Free Cash Flow to the Firm ÷ Enterprise Value
Enterprise Value / Revenue A valuation measure that compares the Enterprise Value of a company to the company's sales. EV/sales gives investors an idea of how much it costs to buy the company's sales. Enterprise Value ÷ Revenue
Enterprise Value / Gross profit Quite similar to Enterprise Value to revenue, with the likely benefit of excluding low-gross-margin businesses from consideration. It may identify a few opportunities missed by EV/EBIT or EV/EBITDA (Acquirer's multiple), if you are willing to accept more volatility as a trade-off. Enterprise Value ÷ Gross profit
Enterprise Value / Research Measures the relationship between a company's Enterprise Value and its research and development (R&D) expenditures. Enterprise Value ÷ Research & Development
Enterprise Value / EBITDA A variant of the Acquirer's Multiple that compares the value of a business, free of Debt, to its EBITDA, with the advantage of valuing a company regardless of its capital structure. Enterprise Value ÷ EBITDA
Allen Enterprise Value / EBITDA Compares the value of a business, free of Debt, to its EBITDA, with the advantage of valuing a company regardless of its capital structure. The Enterprise Value/ EBITDA according to Dana Allen is a number, even when its components are negative.
Enterprise Value / Adjusted Operating Income a.k.a. The Acquirer's Multiple of Tobias Carlisle: it is the valuation ratio used to find attractive takeover candidates. Compares the value of a business, free of Debt, to its operating income, with the advantage of valuing a company regardless of its capital structure. Inverse of Operating Income yield. Compares the value of a business, free of debt, to its Adjusted Operating Income, with the advantage of valuing a company regardless of its capital structure. Inverse of Operating Income yield. Enterprise Value ÷ Adjusted Operating Income
Enterprise Value / Operating Income The valuation ratio used to find attractive takeover candidates. Compares the value of a business, free of Debt, to its operating income, with the advantage of valuing a company regardless of its capital structure. Inverse of Operating Income yield. Compares the value of a business, free of debt, to its Operating Income, with the advantage of valuing a company regardless of its capital structure. Inverse of Operating Income yield. Enterprise Value ÷ Operating Income
Enterprise Value / EBIT Compares the value of a business, free of debt, to its EBIT, with the advantage of valuing a company regardless of its capital structure. Inverse of EBIT yield. Enterprise Value ÷ EBIT
Enterprise Value / Net income Compares the value of a business, free of Debt, to its Net income From Continuing Operations, with the advantage of valuing a company regardless of its capital structure. Inverse of Earnings yield on Enterprise Value. Enterprise Value ÷ Net income From Continuing Operations
Enterprise Value / Cash Flow After Taxes Compares the value of a business, free of debt, to its Cash Flow After Taxes. Facilitates comparing firms from different industries and with different capital structures. Enterprise Value ÷ Cash Flow After Taxes
Enterprise Value / Free Cash Flow Compares the value of a business to its Free cash flow to the firm, with the advantage of valuing a company regardless of its capital structure. Enterprise Value ÷ Free Cash Flow to the Firm
EVEBITDAG The relative trade-off between the price of a stock, the EBITDA and the company's expected growth. (Enterprise Value / EBITDA) ÷ EBITDA.rCAGR
EVEBITG The relative trade-off between the price of a stock, the EBIT and the company's expected growth. (Enterprise Value / EBIT) ÷ EBIT.rCAGR

Valuation - Balance

Compare market value to balance.

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Price to Proportional Tangible Book Value Compares a stock's market value to its Proportional Tangible Book Value. Market cap ÷ Proportional Tangible Book Value
Price to Common Tangible Book Value Compares a stock's market value to its Common Tangible Book Value. Price ÷ Common Tangible Book Value
Price to Book Value Also Price to Common Shareholders' Equity. Compares a stock's market value to its Common Shareholders' Equity. Price ÷ Common Book Value.per share
Price to Non-cash assets Market cap to Non-cash assets. Market cap ÷ Non-cash assets
Price to Fixed assets Market cap to net Fixed Assets. Market cap ÷ Net Property, Plant and Equipment
Price to NCAV Compares a stock's market value Benjamin Graham's Net current asset value. Market cap ÷ NCAV
Price to Liabilities Market Value of Equity / Book Value of Total Liabilities. Market cap ÷ Total liabilities
Price to NNWC Compares a stock's market value to its Net-Net Working Capital. Market cap ÷ NNWC
Faustmann ratio Compares market value to Net Worth. Market cap ÷ Net Worth
Price to Net cash Calculated by dividing the Market Capitalisation by Total Cash minus Total Liabilities. Market cap ÷ Net cash
Enterprise Value to Assets Valuation metric used for measuring the value of the company as compared to its tangible assets and is very helpful in comparing valuations of companies across similar stocks in the sector. (Enterprise Value + Excess Cash'') ÷ Total Assets
Enterprise Value to Tangible Assets Valuation metric used for measuring the value of the company as compared to its tangible assets and is very helpful in comparing valuations of companies across similar stocks in the sector. (Enterprise Value + Excess Cash'') ÷ Tangible Assets
Enterprise value to Capital Employed A measure of enterprise value normalized by the level of capital used by the business. Enterprise Value ÷ Capital Employed
Book to Market Gives the value of a company by comparing the book value of a firm to its market value. Common Book Value ÷ Market cap
Net Cash to Market Calculated by dividing the Total Cash minus Total Liabilities by Market Capitalisation. Net cash ÷ Market cap
Net Cash change to Market cap Shows the impact of the company building up their net cash storage. Net cash.diff ÷ Market cap
Net Debt to Market Gives a sense of how much debt a company has relative to its market value. Net Debt ÷ Market cap
Net Debt change to Market cap Shows the impact of the company building up their cash storage, or paying down debt. Net Debt.diff ÷ Market cap
Equity financing ratio Percentage of financing that is equity. Market cap ÷ Financing
Debt financing ratio Percentage of financing that is debt. Debt ÷ Financing

Profitability

Based on Investment

Indicators expressing profitability and efficiency of the company, based on investment.

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Asset Turnover Asset turnover measures a firm's efficiency at using its assets in generating revenue. There is no number that determines whether a company is doing a good job of generating revenue from its assets. This makes it important to compare the ratio to the historical levels along with peer company or industry averages. Revenue ÷ Total Assets.yr avg
Fixed Assets Turnover Measures a company's ability to generate net sales from fixed-asset investments - specifically property, plant and equipment (PP&E) - net of depreciation. There is no number that determines whether a company is doing a good job of generating revenue from its fixed assets. This makes it important to compare the ratio to the historical levels along with peer company or industry averages. Revenue ÷ Net Property, Plant and Equipment.yr avg
Inventory Turnover Measures how fast a company is selling inventory and is generally compared against industry averages. Revenue ÷ Inventory.yr avg
Cash Turnover Ratio Shows the number of times cash is turned over in an accounting period. Revenue ÷ Total cash and equivalents.yr avg
Gross Profitability Ratio Evidence that a company has sustainable competitive advantages. It is gaining credibility in value investing circles because it provides valuable and predictive qualitative analysis when combined with valuation metrics. Gross Profit ÷ Total Assets.yr avg
Tangible Gross Profitability Ratio Evidence that a company has sustainable competitive advantages. It is gaining credibility in value investing circles because it provides valuable and predictive qualitative analysis when combined with valuation metrics. Gross Profit ÷ Tangible Assets.yr avg
Cash Return on Gross Investment A company's financial performance indicator that measures the gross operating cash flow a company produces with its gross investment. Facilitates comparing firms from different industries and with different capital structures. EBITDA ÷ Gross Investment.yr avg
Return on Invested Capital (ROIC) Measures how efficiently the assets of a company have been used to generate income. NOPAT ÷ Invested Capital.yr avg
Economic spread The net return the firm achieves for the capital it uses in its operations. Return on Invested Capital (ROIC)WACC
Adjusted Return on Invested Capital (ROIC) Measures how much Adjusted Earnings per dollar the business generates from invested capital. Adjusted Earnings ÷ Invested Capital.yr avg
Cash Return on Invested Capital (CROIC) Measures how much free cash flow per dollar the business generates from invested capital. Free Cash Flow to the Firm ÷ Invested Capital.yr avg
Owner Return on Invested Capital (OROIC) Measures how much owner earnings per dollar the business generates from invested capital. Owner Earnings'' ÷ Invested Capital.yr avg
Adjusted Return on Capital Employed (Adjusted ROCE) Compares adjusted operating income with capital employed, using capital employed as defined by Greenblatt. Adjusted Operating Income ÷ Capital employed (Greenblatt).yr avg
Return on Capital Employed (ROCE) Compares earnings with capital employed, using Capital employed as defined by Greenblatt. EBIT ÷ Capital employed (Greenblatt).yr avg
Adjusted After Tax Return on Capital Employed (Adjusted ROCE) Measures how efficiently Capital Employed is being used to produce Adjusted Earnings for equity stakeholders. Adjusted Free Cash Flow ÷ (Capital Employed (Greenblatt).yr avgLong-term lease.yr avg)
After Tax Return on Capital Employed (AT ROCE) Compares earnings with capital invested in the company. Net income From Continuing Operations (IAT) ÷ Capital Employed.yr avg
Cash Return on Capital Employed (CROCE) Compares Free Cash Flow to the Firm with capital invested in the company. Free Cash Flow to the Firm ÷ Capital Employed.yr avg
Cash Return on Capital Employed' (CROCE') Compares Free Cash Flow to the Firm with capital invested in the company. Free Cash Flow to the Firm' ÷ Capital employed (Greenblatt).yr avg
EBITA Return on Assets (EBITA ROA) Measures operating efficiency apart from tax and leveraging factors. EBITA ÷ Total Assets.yr avg
EBITA return on Tangible Assets (EBITA ROTA) Measures operating efficiency apart from tax and leveraging factors. EBITA ÷ Tangible Assets.yr avg
EBIT Return on Assets (EBIT ROA) Measures operating efficiency apart from tax and leveraging factors. EBIT ÷ Total Assets.yr avg
EBIT return on Tangible Assets (EBIT ROTA) Measures operating efficiency apart from tax and leveraging factors. EBIT ÷ Tangible Assets.yr avg
Return on Assets (ROA) An indicator of how profitable a company is relative to its total assets. It's a useful number for comparing competing companies in the same industry. Net income ÷ Total Assets.yr avg
Cash Return on Assets (Cash ROA) Measures how efficiently total assets are being used to produce cash for equity stakeholders. Cash Flow from Operations ÷ Total Assets.yr avg
Free Cash Return on Assets (Free Cash ROA) Measures how efficiently total assets are being used to produce cash for equity and debt stakeholders. Free Cash Flow to the Firm ÷ Total Assets.yr avg
Cash-NOPAT on Tangible Assets Measures how efficiently tangible assets are being used to produce cash for equity and debt stakeholders. Free Cash Flow to the Firm ÷ Tangible Assets.yr avg
Owner Return on Tangible Assets Measures how efficiently Tangible Assets are being used to produce Owner Earnings. Owner Earnings ÷ Tangible Assets.yr avg
Return on Equity (ROE) Measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. Earnings Per Share (EPS) ÷ Common Book Value.yr avg
Adjusted Return on Equity (ROE) Return on Equity adjusted for treasury stock. Net income ÷ Shareholders' Equity and Treasury Stock.yr avg
Return on Tangible Equity (ROTE) Measures the rate of return on the tangible common equity. Earnings Per Share (EPS) ÷ Common Tangible Book Value.yr avg
Cash Return on Equity (Cash ROE) Measures a corporation's profitability by revealing how much cash flow from operations a company generates with the money shareholders have invested. Cash Flow from Operations ÷ Shareholders' equity.yr avg
Free Cash Return on Equity (Free Cash ROE) Measures a corporation's profitability by revealing how much free cash flow a company generates with the money shareholders have invested. Owner Earnings' ÷ Shareholders' equity.yr avg
OE Return on Equity Measures a corporation's profitability by revealing how much free cash flow a company generates with the money shareholders have invested. Owner Earnings ÷ Shareholders' equity.yr avg
Return on Retained Earnings (RORE) How much a company earns for its shareholders by reinvesting its profits back into the company. EPS.5y change ÷ Change to Retained Earnings.sum 5y
R&D / Assets Measure of Research & Development intensity. Research & Development ÷ Total Assets.yr avg
R&D / Book Measure of Research & Development intensity. Research & Development ÷ Shareholders' Equity.yr avg
CapEx / Assets Measures Capital Expenditure Intensity as the relationship between a company's total assets and its Capital Expenditures. Capital Expenditures ÷ Total Assets.yr avg
CapEx / Fixed Assets Measures Capital Expenditure Intensity as the relationship between a company's Fixed Assets and its Capital Expenditures. Capital Expenditures ÷ Gross Property, Plant and Equipment.yr avg
Depreciation rate Percent rate at which fixed assets are depreciated. Depreciation / Gross Fixed Assets
CapEx / Depreciation Helps understand a business's current level of capital spending and predict the firm's future direction. Capital Expenditures ÷ Depreciation.yr avg
Reinvestment rate Allows to understand how much money a company is reinvesting in itself. −(Change in Working Capital + Long-term Reinvestments) ÷ Adjusted Net Operating Profit After Tax (NOPAT)
Reinvestment rate' Measures the percentage of a company's after-tax operating income that is allocated to capital expenditures and net working capital. −(Change in Working Capital + Net Capital Expenditures) ÷ Cash-NOPAT
Long-term Reinvestments / Assets Measures long-term reinvestment intensity the relationship between a company's total assets and its reinvestments. Long-term Reinvestments ÷ Total Assets.yr avg
Profit per Employee Measure of how much money each employee generates for the firm. Good proxy for the return on intangibles. Net income From Continuing Operations ÷ Number of employees
Retained Earnings / Total Assets Measures cumulative profitability over time as a proportion of total assets, reflecting the company's age and earning power. Retained Earnings ÷ Total Assets.yr avg
Return on Research Capital Used to assess the revenue earned by a company as an outcome of expenditures made on research and development activities. Gross Profit ÷ Research & Development
Long-term Reinvestments return Measures the effectiveness of reinvestments by comparing income increase with the reinvestments. Cash Flow from Operations.wavg diff ÷ −Long-term Reinvestments.wavg
Earnings Power Value/ Assets Indicator of management quality and competitive advantage. Asset value exceeding EPV, indicates value lost to poor management and/or industry decline. EPV similar to EPV, indicates free entry business balance. EPV exceeding asset value is the consequence of competitive advantage and/or superior management. Earnings Power Value ÷ Total Assets
Inventory/ Assets Measures the inventory as a percentage of total assets. Used to assess operational management and inventory turnover. Inventory ÷ Total Assets
Accounts Receivable/ Assets Measures the accounts receivable as a percentage of total assets. Accounts receivable ÷ Total Assets

Based on Sales

Indicators expressing profitability and efficiency of the company, based on sales.

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Gross margin Gross margin represents the proportion of each dollar of revenue that the company retains as gross profit. Its growth is the best quantitative indicator of a company’s pricing power. Gross Profit ÷ Revenue
EBITDA margin A financial metric used to assess a company's profitability by comparing its revenue with earnings. More specifically, since EBITDA is derived from revenue, this metric would indicate the percentage of a company is remaining after operating expenses. EBITDA ÷ Revenue
EBITA margin A financial metric used to assess a company's profitability by comparing its revenue with earnings. More specifically, since EBITA is derived from revenue, this metric would indicate the percentage of a company is remaining after operating expenses. EBITA ÷ Revenue
Operating Margin A financial metric used to assess a company's profitability by comparing its revenue with Operating Income. Particularly with regard to cost control. Operating Income ÷ Revenue
Adjusted Operating Margin A financial metric used to assess a company's profitability by comparing its revenue with adjusted Operating Income. Particularly with regard to cost control. Adjusted Operating Income ÷ Revenue
EBIT margin A.k.a. Operating profit margin. A financial metric used to assess a company's profitability by comparing its revenue with EBIT. Particularly with regard to cost control. EBIT ÷ Revenue
Operating Cash Flow margin Measures cash from operating activities as a percentage of sales revenue in a given period. Cash Flow from Operations ÷ Revenue
Free Cash Flow margin Measures how much per dollar of revenue management is able to convert into Free Cash Flow. Owner Earnings' ÷ Revenue
Adjusted FCF margin Measures how much per dollar of revenue management is able to convert into Adjusted Earnings. Adjusted Earnings ÷ Revenue
Net margin Or Net profit margin is a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue. Net income ÷ Revenue
Net interest margin Performance metric that examines how successful a firm's investment decisions are compared to its debt situations. Net Interest Income ÷ Interest earning assets
EVA margin The firm's true economic profit margin net of all operating and capital costs. EVA ÷ Revenue
EVA momentum The change in a company's economic profit in one period divided by its sales in the prior period. EVA diff ÷ Revenue
Loss ratio Also Claims ratio. calculated by dividing total claims expense by net earned premiums. Policyholder benefits and claims incurred ÷ Premiums
Combined ratio Profitability ratio. Measures whether the insurance company is earning more revenues from its collected premiums relative to the claims it pays out. Total benefits, claims and expenses ÷ Premiums
R&D to Revenue Measures the percentage of sales that is allocated to R&D expenditures. Research & Development ÷ Revenue
Cost-to-Income Ratio The measure of the costs of running a company in relation to its operating income. It is an important financial tool, particularly when evaluating banks. Operating Expenses (OpEx) ÷ Operating Income
Operating Expense Ratio (OER) Shows the efficiency of a company's management by comparing the total operating expense (OpEx) of a company to revenue. Operating Expenses (OpEx) ÷ Revenue
Selling General & Administrative expenses/ Revenue Expense ratio by dividing the selling, general & administrative expenses by revenue. Selling General & Administrative expenses ÷ Revenue
Selling General & Administrative expenses/ Gross Profit Expense ratio by dividing the selling, general & administrative expenses by gross profit. Selling General & Administrative expenses ÷ Gross Profit
Depreciation/ Gross Profit Expense ratio by dividing depreciation by gross profit. Depreciation ÷ Gross Profit
Capital Expenditures/ Operating Income Measures how much of a company’s operating income is being devoted to capital expenditure. Net Capital Expenditures ÷ (Gross ProfitSelling General & Administrative expenses)
Days Inventory Outstanding Or Days Sales of Inventory value (DSI), is a financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory into sales. Inventory.yr avg ÷ Cost of Revenue.daily
Cash Conversion Cycle A metric that expresses the length of time, in days, that it takes for a company to convert resource inputs into cash flows. Days Inventory Outstanding + Days Sales OutstandingDays Payable Outstanding
The Rule of 40 A rule of thumb to analyze the health of a software/SaaS business. It takes into consideration two of the most important metrics for a subscription company: growth and profit. Revenue.qtr: 1y growth + EBITDA margin

Quality of earnings

Refers to the amount of earnings attributable to higher sales or lower costs rather than artificial profits created by accounting anomalies such as inflation or inventory.

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Cash Sales Sales in which the payment obligation of the buyer is settled at once. RevenueAccounts receivables.1y diff
Cash revenue adjustment Delivered goods or services that are not paid at the moment minus undelivered goods or services that are paid up front.. Accounts ReceivablesDeferred revenue
CF / EPS Compares Owner Earnings with reported EPS. Owner Earnings ÷ EPS
CFO / Net income Ratio to determine the quality of a firm's reported earnings. When the ratio rises above 1, it is indicative of a strong ability to fund its activities through generation of operating cash flow. Cash Flow from Operations ÷ Net income
Accruals to Total Assets Capture where accounting profits are not supported by cash profits. (Net income From Continuing OperationsCash Flow from Operations ÷ Total Assets.yr avg
Sloan ratio Richard Sloan was first to document what is referred to as the accrual anomaly. Shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. Cash Flow based Aggregate Accruals ÷ Total Assets.yr avg
Absolute Sloan ratio Absolute value of sloan ratio. abs(Sloan ratio)
RSST Accruals to Total Assets Capture where accounting profits are not supported by cash profits, using RSST accruals. RSST Acruals ÷ Total Assets.yr avg
Soft Assets to Total Assets The proportion of a company's assets that are made up for soft assets. Soft assets ÷ Total Assets

Liquidity

Indicators expressing the ability of a company to pay short-term obligations.

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Current ratio Liquidity ratio. Measures whether or not a firm has enough resources to pay its debts over the next 12 months Current Assets ÷ Current liabilities
Current Liability Coverage Ratio Liquidity ratio. Measures the company's ability to pay its current liabilities. It's a better indicator than the current ratio or quick ratio. (Cash Flow from OperationsDividend Paid) ÷ Current liabilities
Cash ratio A company's ability to repay its short-term debt with cash or near-cash resources. Cash and short-term investments ÷ Current Liabilities
Free Cash Current Liability Coverage Ratio Liquidity ratio. Measures the company's ability to pay its current liabilities. Before dividends paid. Owner Earnings' ÷ Current liabilities
Free Cash Current Liability Net Coverage Ratio Liquidity ratio. Measures the company's ability to pay its current liabilities. After dividends paid. (Owner Earnings'Dividend Paid) ÷ Current liabilities
Quick ratio Liquidity ratio. measures a company’s ability to meet its short-term obligations with its most liquid assets. (Total cash and equivalents + Total receivables) ÷ Current liabilities
Complete Quick ratio Liquidity ratio. measures a company’s ability to meet its short-term obligations with its most liquid assets and cash flow. Before dividends paid. (Cash and short-term investments + Owner Earnings') ÷ Current liabilities
Net Complete Quick ratio Liquidity ratio. measures a company’s ability to meet its short-term obligations with its most liquid assets and cash flow. After dividends paid. (Cash and short-term investments + Owner Earnings'Dividend Paid) ÷ Current liabilities
Cash to Current Assets Determines how liquid a company is by comparing its readily available cash to its current assets. Cash and short-term investments ÷ Current Assets
Cash to Assets The proportion of a company's assets that are made up for cash and short term investments. Cash and short-term investments ÷ Total Assets
Net Working Capital to Assets Liquidity ratio that expresses the net current assets or working capital of a company as a percentage of its total assets. One of the most keenly watched financial ratios. Net Working Capital ÷ Total Assets
Days Sales Outstanding Or Days' Sales in Receivables, is the average number of days it takes to collect a receivable. High growth can be an indicator of revenue inflation. Accounts receivable.yr avg ÷ Revenue.daily
Days Payable Outstanding A company's average payable period, telling how long it takes a company to pay its invoices from trade creditors. Accounts Payable.yr avg ÷ Cost of Revenue.daily
Flow ratio Measures whether the company has an asset light business model and manages its working capital well by isolating the bad current assets. Non-cash current assets ÷ Non-Interest-Bearing Current Liabilities (NIBCL)
Adjusted Interest Coverage Ratio Liquidity ratio. The lower the ratio, the more the company is burdened by debt expense. Adjusted Free Cash Flow to the Firm ÷ Interest expense
Interest Coverage ratio Liquidity ratio. The lower the ratio, the more the company is burdened by debt expense. EBIT ÷ Interest expense
Months Before Cash Runs Out How much months are left before the company runs out of cash. Cash and short-term investments ÷ Burn rate
Loans-to-Assets Measures the total loans outstanding as a percentage of total assets. The higher this ratio indicates a bank is loaned up and its liquidity is low. The higher the ratio, the more risky a bank may be to higher defaults. Net loans ÷ Total Assets
Loan-deposit ratio Ratio between the banks total loans and total deposits. If the ratio is lower than one, the bank relied on its own deposits to make loans to its customers, without any outside borrowing. If the ratio is greater than one, the bank borrowed money which it reloaned at higher rates, rather than relying entirely on its own deposits. Net loans ÷ Deposits

Solvency

Indicators expressing the ability of a company to meet its long-term financial obligations.

term description formula
Debt ratio Solvency Ratio. The percentage of a company's assets that are provided via debt Total liabilities ÷ Total Assets
Long term debt ratio The Long term debt to Total asset ratio is an indication of what portion of a company's total assets is financed from long term debt. The value varies from industry and company. Long-term liabilities ÷ Total Assets
Total Debt/ Assets A measure of the extent to which a company's assets are financed by debt. Total Debt ÷ Total Assets
Net Debt/ Assets A measure of the extent to which a company's assets are financed by debt. Net Debt ÷ Total Assets
Total debt / Equity Solvency Ratio. A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets. Total debt ÷ Shareholders' Equity
Liabilities / Equity Solvency Ratio. A measure of a company's financial leverage calculated by dividing its total debt by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets. Total liabilities ÷ Shareholders' Equity
Long-term Debt/ Equity ratio Solvency Ratio. Calculated by taking the company's long-term debt and dividing it by the book value. The greater a company's leverage, the higher the ratio. Generally, companies with higher ratios are thought to be more risky. Long-term debt and Capital lease obligations ÷ Shareholders' Equity
Net Debt / Equity Solvency Ratio. A measure of a company's financial leverage calculated by dividing its net debt by stockholders' equity. It indicates what proportion of equity and net debt the company is using to finance its assets. Net Debt ÷ Shareholders' Equity
Equity ratio Solvency Ratio. A financial ratio indicating the relative proportion of equity used to finance a company's assets. Shareholders' Equity ÷ Total Assets
Equity multiplier Solvency Ratio. A measure of financial leverage. Total Assets ÷ Shareholders' Equity
Debt / Tangible Book value Solvency Ratio. A measure of a company's financial leverage calculated by dividing its total liabilities by tangible book value. Adjusted Total Liabilities ÷ Tangible Book value
Tier 1 Capital ratio The part of a financial institution's capital that comprises equity and disclosed reserves. Core Capital ÷ 0.8 × Non-cash assets
LT debt / Working capital Helpful in determining the degree of reliance by a firm on long-term debt to finance its day-to-day operations. Long-term debt and Capital lease obligations ÷ Net Working Capital
Net debt / EBITDA indicates how many years of EBITDA would be necessary in order to pay back all the debt Net debt ÷ EBITDA
Cash to Debt Measures the financial strength of a company. Cash and short term investments ÷ Total debt
Cash Flow Coverage Ratio A type of debt coverage ratio, and is an estimate of the amount of time it would take a company to repay all its liabilities if it devoted all of its cash flow to debt repayment. Cash Flow from Operations ÷ Total liabilities
Free Cash Flow / Long Term Debt This ratio provides an indication of a company's ability to cover long term debt with its yearly free cash flow. The higher the percentage ratio, the better the company's ability to carry its debt. Free Cash Flow to the Firm ÷ Long-term debt and Capital lease obligations
Debt leverage ratio measures a company's ability to repay debt obligations from annualized EBITDA. Total liabilities.yr avg ÷ EBITDA
Interest expense to Debt ratio Estimates the rate of interest a company is paying on their outstanding debt. Interest expense ÷ Total debt
External Financing Ratio Shows if a company is able to finance investments from cash the business generated or if it needed external money to meet its investment needs. (Total assets.diffCash Flow from Operations) ÷ Total assets