Term
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Definition
Market Value of company's equity.
(Share Market Value)*(# of shares) = Market Cap |
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Term
| Book Value vs. Market Value |
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Definition
Book Value: Original price.
Market Value: Current price; prices subjected to changes over time.
Ex. A share book value is $5 and market value of the same share is $8. A gain of $3 indicates that the company is profiting. |
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Term
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Definition
"Earnings per Share"
(Share Value)/(# of Shares) = Earning per Share |
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Term
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Definition
| (Company's Equity)/(# of Shares)= Price per Share |
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Term
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Definition
"Earnings per Price"
(EPS)/(Share Value)= E/P |
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Term
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Definition
"Price to Earnings Ratio"
(Share Value)/(EPS) = P/E Ratio |
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Term
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Definition
| Market Value Share Price/(Trailing 12 Months Earnings per Share)= Trailing P/E Ratio |
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Term
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Definition
Something that has value or gives us future benefits.
(Liabilities) + (Equity) = Assets |
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Term
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Definition
(Assets)-(Liabilites) = Equity
Amount leftover after subracting liabilities to assets is what we own. |
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Term
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Definition
| Trailing 12 months earnings. |
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Term
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Definition
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Term
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Definition
"Return on Assets"
(Operating Profits)/(Assets) |
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Term
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Definition
"Earnings Before Interests and Taxes"
Includes Non-operating profits.
(EBIT)/(Assets)= (Net Income)+(Interests)+(Taxes)/(Assets) |
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