Asset metrics explained
Find the meaning of a figure without reading a finance textbook.
Valuation and financials
| Metric | Meaning |
|---|---|
| Market capitalization | Market value of the company's equity |
| P/E | Price relative to earnings per share |
| P/B | Price relative to book value per share |
| EPS | Earnings per share for the stated period |
| EV/EBITDA | Enterprise value relative to earnings before interest, taxes, depreciation, and amortization |
| Gross / operating / net margin | Profit at the named stage as a share of revenue |
| ROE | Net income relative to shareholder equity |
| Debt-to-equity | Debt relative to book equity |
| Current / quick ratio | Measures of short-term liquidity using different asset definitions |
P/S compares price with revenue per share. Revenue growth measures the change in revenue between comparable periods. Dividend per share is the stated payout per share; payout ratio compares it with earnings per share. Check the declared ex-dividend and payment dates when reviewing a distribution.
Price and risk
52-week high/low gives historical price-range context. Volume describes trading activity. Volatility describes variation in returns; drawdown describes a peak-to-trough decline.
Beta measures historical benchmark sensitivity. Sharpe relates excess return to volatility; Sortino uses downside variation. Compare matching periods and calculation bases.
Ownership and expectations
| Metric | Meaning |
|---|---|
| Shares outstanding | Issued shares held by shareholders |
| Float | Shares classified as available for public trading |
| Short interest | Shares sold short and not yet covered |
| Days to cover | Short interest divided by average trading volume |
| Insider ownership | Ownership attributed to company insiders |
| Analyst consensus | Summary of analyst recommendations |
| Mean price target | Average of available analyst targets |
| Earnings surprise | Reported earnings compared with the corresponding estimate |
Income and funds
Dividend yield compares a stated annual payout with price. Expense ratio is a fund's annual expense percentage. AUM is assets under management. ETF composition shows available constituent holdings and weights.
Coverage and dates matter: a missing dividend record is not confirmation of no income, and a fund's visible top holdings may not describe its entire portfolio.