Number of pieces a company has been divided into (aka total share count)
The profit one share makes for an entire year
Earnings per share. This is calculated after all the employees have been paid, etc This is the money that is left at the end of the year (per share)
Income statement > Net Income / Basic Weighted Average Shares
Earnings / (Market Shares + Diluted Shares)
When a company says they give stock benefits to the employees, they dont be really giving the existing shares from the market but they provide an agreement on paper. In other words the company is creating more shares even though they’re not on the market, it’s called diluting the company.
This is a more real number than the one that’s reported on the market
Income statement > Net Income / Diluted Weighted Average Shares
P / E Ratio
Price to earnings ratio
For example: If a company’s P/E is 4.5, it means that for every 4.5$ you spend on this company’s share you expect 1$ in return as earnings one year later.
Market price / EPS
The number of shares traded on a given day
The amount of money you will receive in a year per one share.
If the rate is 2.44, you will receive 25% of it every quarter. If you own 10 shares, you will receive 24.4 instead
Dividend Yield %
Dividend Rate / Market Price
Debt / Equity
Go to Balance Sheet. Add all those “Debt” numbers and divide it by “Total Equity”
Equity of the company per share
MSN Money Stock summary page > Analysis > Key Statistics
Go to Balance Sheet: Total Equity / Shares Outstanding
P / BV
Price to Book Value
If P / BV of a company is 3.4, it means for every 3.4$ you spend buying this company you own 1$ of its equity.
High price to book means you have a very low margin of safety. Safety as in, if the earnings drop the market price will drop pretty soon as there isn’t much in the equity to back up the market price against.
Growth of Book Value over the years
Return on Equity
Net Income / Equity or EPS / BV
Total Current Assets / Total Current Liability
Current Asset → anything that will get liquidated in next 12 months
Current Liability → anything the company pays off to someone in next 12 months
For example if it is 2.68, it means for every $2.68 that the company receives in the next 12 months it has to pay $1 as a liability
Net Debt / Equity
(Debt - Cash) / Equity