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Fundamental Analysis A method of evaluating a security by attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors. Fundamental analysts attempt to study everything that can affect the security's value, including macroeconomic factors (like the overall economy and industry conditions) and individually specific factors (like the financial condition and management of companies). Market Capitalization
It is the total dollar value of all outstanding shares and is calculated by multiplying the number of shares outstanding by the current market price of one share.
-Mega Cap: Market cap of $200 billion and greater Earnings Before Interest, Taxes, Depreciation and Amortization - EBITDA An indicator of a company's financial performance which is calculated as follows: EBITDA= Revenue - Expenses (excluding tax, interest, depreciation and amortization) EBITDA can be used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions. However, this is a non-GAAP measure that allows a greater amount of discretion as to what is (and is not) included in the calculation. This also means that companies often change the items included in their EBITDA calculation from one reporting period to the next. Price-Earnings Ratio - P/E Ratio A valuation ratio of a company's current share price compared to its per-share earnings. Calculated as:
MARKET VALUE PER SHARE/EARNINGS PER SHARE EPS is usually from the last four quarters (trailing P/E), but sometimes it can be taken from the estimates of earnings expected in the next four quarters (projected or forward P/E). A third variation uses the sum of the last two actual quarters and the estimates of the next two quarters. Also sometimes known as "price multiple" or "earnings multiple". Dividend Yield A financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. Dividend yield is calculated as follows:
ANNUAL DIVIDENDS PER SHARE / PRICE PER SHARE The highest and lowest price at which a stock traded in the past 12 months, or 52 weeks. Float The total number of shares publicly owned and available for trading. The float is calculated by subtracting restricted shares from outstanding shares. Short ratio The total number of shares of a security that have been sold short by customers and securities firms. |
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Best Charts 101 



