You can learn from basic metrics to complicated ones in this series page.
What Are Shares Outstanding? Shares outstanding are shares of a company that are currently traded on the secondary market and held by all its investors. Outstanding shares include all restricted shares owned by the company’s insiders, as well as share blocks owned by institutional investors. You can find shares of a company on its balance sheet under the …
Cash per Share is a ratio of current cash that a company has on its hands as opposed to capital obtained by loans or other forms of financing. In general, the capital that a company has on its hands can be spent for different reinvestment activities such as buying assets, paying back debt, research and development (R&D), …
EV/EBITDA or Enterprise multiple is a ratio that helps investors estimate a company’s value. The enterprise multiple considers the company in the same way that a potential acquirer would because it includes debt, which other ratios such as the P/E ratio do not. In other words, if an investor were to buy the entire company, …
A fundamental analyst has to go through hundreds of numbers when analyzing the company. Each of those numbers has a story that explains the company’s state. However, two metrics particularly highlight the company’s success in running the business and earning profit for the benefit of the shareholders. The two metrics are Revenue per share and …
Know What Revenue and Earnings per Share (EPS) Tell Investors Read More »
The profitability ratios namely Return on equity (ROE) and return on assets (ROA) are the two important ratios for evaluating a company’s financial health, effective management, and performance. Return on Assets (ROA) Return on assets (ROA) measures a company’s profitability with its total assets. ROA can inform an investor about how effective the company management at generating profit …
Profitability Profitability is an earned profit after you exclude all operating costs and expenses. In simple words, the profitability ratio helps investors determine if a company makes a decent amount of profit from its business and operations. Of course, the higher profitability ratio results are always better performance indicators. Still, these ratios need to be …
2 Important Profitability Ratios for Financial Analysis Read More »
The Price-to-sales ratio is one of the most important valuations and analysis metrics for investors and analysts. The ratio presents how much investors want to pay per dollar of sales. The price-to-sales ratio (P/S) is determined by dividing a company’s market capitalization (the number of outstanding shares multiplied by the share price) by its cumulative revenue (sales) …
Why Is the Price-To-Sales (P/S) Ratio Useful to Investors Read More »
What Is the price-to-book ratio? The price-to-book (P/B)ratio is vital to value investors because it signals that the stock is selling less than its intrinsic value. It shows investors whether the company is overvalued or undervalued. Thus, the P/B ratio that is lower than one may signal that the current stock is undervalued. On the …
Halal Investment Series Part 1 There are almost what seems like an infinite number of companies to invest in. How do you know which company to invest in? How should you find the information required to research these stocks? What is the best way to find stock? Today we will talk about Public Companies & …
Halal Investment Series Part 2 A ticker symbol, also known as a stock symbol, is an abbreviation used to identify a publicly-traded company. A stock symbol can be letters, numbers, or both. So, why do we need a ticker symbol? Investors will not be confused by companies with similar names. It is also easier to …