The following list maintains several key financial and
The cyclicality term refers to how a company's earnings are
expected to be impacted by general economic fluctuations, which
thereby affects the stock price. Early-, middle-, and late
cyclicality indicates the timeframe in the business cycle, when the
stock is expected to outperform the general stock market. Some
stocks are referred to as non-cyclical companies as they do not fit
well in this categorization and. Non-cyclical stocks are usually
labeled 'defensive stocks' meaning that they are generally limited
affected by economic fluctuations.
The Relative return on the share from dividend payments.
The value of the company on a debt free basis. Calculated as
Market capitalization x Net debt.
Earnings per share measures the total earnings of the company
divided by the number of outstanding shares. The higher the EPS,
the better value the share price is.
Number of outstanding shares excluding strategic holdings and
treasury shares. This measure is usually in percent of total number
of shares (all share classes).
The market value of equity. The number of shares in issue
multiplied by the share price, to give the overall value of the
company. This figure is calculated bythe Total number of
sharesxPrice per share(Weighted if more than one share class).
Interest bearing debt - cash and cash equivalents.
A measure of the current market price compared to its book
value. The book value is calculated by subtracting the company's
liabilities from its tangible asset value. The lower the share
price in comparison to the book price, the better value the shares
Price book ratio compares the equity market value with the book
value. A high P/B indicates a high expected return on equity. It is
This measures the ratio of the share price to the earnings (or
profit) of a company. It The P/E reflects the price for one unit of
earnings. It is calculated as Share price / EPS.
The Price/Earnings to Growth ratio is a variation of the P/E
ratio that factors in the expected growth rate of a company. The
P/E ratio will usually be higher for a company with a higher growth
rate. By dividing that number by the growth rate, a better
comparison for high growth companies is obtained. Accordingly, it
is a very popular multiple when evaluating growth companies. As
with the P/E ratio, the lower the number, the more undervalued the
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