Post by matt87m2 on Jun 7, 2012 10:44:46 GMT -5
Yahoo Finance Key Stats
Enterprise Value (EV) - Alternative to Market Cap, more accurate view of a firm’s value. If a buyout occurred, the acquirer would take on a company’s debt, but pocket the cash. (Market Cap+ Total Debt – Total Cash + Short Term Investments)
Trailing P/E- Look at company’s debt, some companies grow off this and will have low P/E because of this. Usually a low P/E is good if the company does not have any debt. (Current Market Price/EPS)
Forward P/E- An analyst’s prediction of the EPS. If lower than the trailing P/E then the company is predicted to expand/increase in stock price. (Current Market Price/ Projected EPS)
PEG Ratio- A stocks potential value, accounts for growth. A lower
PEG ratio means that the stock is more undervalued…so compare with companies in its industry. (P/E Ratio/5 Year Expected EPS Growth)
Enterprise Value/Revenue- Make sure you use this to compare companies in same industry. Median EV/R is 1.5. Companies with low EV/R ratios have almost as much cash as Market Cap + Debt. Stocks with negative EV/R have bad operating history. (EV/Total Revenues)
Enterprise Value/ EBITDA – Expect higher EV/ EBITDA with high growth industries and lower EV/ EBITDA in slow growth industries like railroads. Use this for companies with big upfront investments. EBITDA gives us a better picture of the company’s earning power. Look at companies with an EV/ EBITDA of less than 5. (EV/ EBITDA) EBITDA= Earnings before interest, taxes, depreciation, amortization.
Profit Margin- A higher profit margin is a more profitable company. It is bad if the profit margin goes down. Use this to compare companies in the same industry and for comparing a single company to its past profit margins. Ex) 20% profit margin = $.20 for each dollar of sales. Ex2) 2009- 10 million/100 million=10% … 2010- 15 million/200 million= 7.5%...This means that the company went down in the past year even though it had a higher net income. BAD ((Net income/total revenues)*100)
Operating Margin- A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt. Look at change in operating margin over time and compare to competitors. The higher the increase/margin, the more per dollar sales. (((total revenues-total operating costs)/ (total Rev))*100)
Return on Assets- How profitable a company is relative to its total assets. Highly dependent on the industry. How efficient a company is with investing their money. The higher the ROA, the better. (Net income/Assets)
Return on Equity- The higher the ROE, the better. This way a business can generate more cash internally. It measures a corporations profitability by revealing how much profit a company generates with the money shareholders have invested. (Net income/shareholders equity)
Revenue per share- The higher the ratio, the more active the company is. (Net income/shareholder’s equity)
Quarterly Revenue Growth- A company’s Current Quarter’s sales with last year’s quarterly performance. Investors want to see it improve overtime. ((Qtrly Total revenues – Qtrly Total Revenues(yr ago))/ Qtrly total revenue(yr ago) *100).
Some of my interpretations so far
- Find a consistent company with a P/E that doesn’t change over the last 5 years, but the EPS goes up. This means that stock price has to increase.
-If trailing P/E is higher than the forward P/E then check to see what the company is up to in the future
-If the EV is lower than the Market Cap than it is good
-Use a maximum debt/equity level of 50% and EV/EBITDA ratio of 5 or less. This attracts interest in investors.
Enterprise Value (EV) - Alternative to Market Cap, more accurate view of a firm’s value. If a buyout occurred, the acquirer would take on a company’s debt, but pocket the cash. (Market Cap+ Total Debt – Total Cash + Short Term Investments)
Trailing P/E- Look at company’s debt, some companies grow off this and will have low P/E because of this. Usually a low P/E is good if the company does not have any debt. (Current Market Price/EPS)
Forward P/E- An analyst’s prediction of the EPS. If lower than the trailing P/E then the company is predicted to expand/increase in stock price. (Current Market Price/ Projected EPS)
PEG Ratio- A stocks potential value, accounts for growth. A lower
PEG ratio means that the stock is more undervalued…so compare with companies in its industry. (P/E Ratio/5 Year Expected EPS Growth)
Enterprise Value/Revenue- Make sure you use this to compare companies in same industry. Median EV/R is 1.5. Companies with low EV/R ratios have almost as much cash as Market Cap + Debt. Stocks with negative EV/R have bad operating history. (EV/Total Revenues)
Enterprise Value/ EBITDA – Expect higher EV/ EBITDA with high growth industries and lower EV/ EBITDA in slow growth industries like railroads. Use this for companies with big upfront investments. EBITDA gives us a better picture of the company’s earning power. Look at companies with an EV/ EBITDA of less than 5. (EV/ EBITDA) EBITDA= Earnings before interest, taxes, depreciation, amortization.
Profit Margin- A higher profit margin is a more profitable company. It is bad if the profit margin goes down. Use this to compare companies in the same industry and for comparing a single company to its past profit margins. Ex) 20% profit margin = $.20 for each dollar of sales. Ex2) 2009- 10 million/100 million=10% … 2010- 15 million/200 million= 7.5%...This means that the company went down in the past year even though it had a higher net income. BAD ((Net income/total revenues)*100)
Operating Margin- A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt. Look at change in operating margin over time and compare to competitors. The higher the increase/margin, the more per dollar sales. (((total revenues-total operating costs)/ (total Rev))*100)
Return on Assets- How profitable a company is relative to its total assets. Highly dependent on the industry. How efficient a company is with investing their money. The higher the ROA, the better. (Net income/Assets)
Return on Equity- The higher the ROE, the better. This way a business can generate more cash internally. It measures a corporations profitability by revealing how much profit a company generates with the money shareholders have invested. (Net income/shareholders equity)
Revenue per share- The higher the ratio, the more active the company is. (Net income/shareholder’s equity)
Quarterly Revenue Growth- A company’s Current Quarter’s sales with last year’s quarterly performance. Investors want to see it improve overtime. ((Qtrly Total revenues – Qtrly Total Revenues(yr ago))/ Qtrly total revenue(yr ago) *100).
Some of my interpretations so far
- Find a consistent company with a P/E that doesn’t change over the last 5 years, but the EPS goes up. This means that stock price has to increase.
-If trailing P/E is higher than the forward P/E then check to see what the company is up to in the future
-If the EV is lower than the Market Cap than it is good
-Use a maximum debt/equity level of 50% and EV/EBITDA ratio of 5 or less. This attracts interest in investors.
