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What does Mkt Cap £m mean?

Market Capitalisation is an indicator of the size of the company, specifically the total market value of the company's shares. It is calculated by multiplying the current Share Price by the current number of Shares Outstanding. This value is standardized into £ Sterling and it is updated each night (i.e. it is not 15 minute delayed data).

Stockopedia explains Mkt Cap £m...

Market Capitalisation only takes into account the value of the company's shares (equity), it ignores the amount of debt a company may have taken on and therefore isn't the best indicator of the company's size. The Enterprise Value adds the net debt to the Market Cap and is a better indicator of the minimum amount that an acquiring company may have to pay to buy the firm outright.

What does EPS 3y CAGR % mean?

This growth rate is the compound annual growth rate of Diluted Normalised Earnings Per Share over the last 3 years.


The CAGR formula is the following: (current year's EPS / EPS 3 years ago) ^ (1/3) - 1

NOTE: If less than 3 years are available, a 'NA' (Not Available) code will be used.

Stockopedia explains EPS 3y CAGR %...

Stocks with higher earnings-per-share growth rates are generally more desirable than those with slower earnings-per-share growth rates.

One of the important differences vs. net-income growth rates is that EPS growth reflects the dilution that occurs from new stock issuance, the exercise of employee stock options, warrants, convertible securities, and share repurchases.

What does EPS 5y CAGR % mean?

This figure represents the 5 year CAGR (or compound annual growth rate) of the company's diluted EPS (earnings per share).

What does P/E mean?

The Price to Earnings Ratio (also called the PE ratio) is the primary valuation ratio used by most equity investors. It is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share.A hig P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back the purchase price, ignoring inflation. Unlike the EV/EBITDA multiple which is capital structure-neutral, the price-to-earnings ratio reflects the capital structure of the company in question. The reciprocal of the P/E ratio is known as the earnings yield.

Stockopedia explains P/E...

This is is the primary valuation ratio used by most equity investors. A high P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back the purchase price, ignoring inflation.

Unlike the EV/EBITDA multiple which is capital structure-neutral, the price-to-earnings ratio reflects the capital structure of the company in question

What does P/E mean?

The Price to Earnings Ratio (also called the PE ratio) is the primary valuation ratio used by most equity investors. It is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share.A hig P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back the purchase price, ignoring inflation. Unlike the EV/EBITDA multiple which is capital structure-neutral, the price-to-earnings ratio reflects the capital structure of the company in question. The reciprocal of the P/E ratio is known as the earnings yield.

Stockopedia explains P/E...

This is is the primary valuation ratio used by most equity investors. A high P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back the purchase price, ignoring inflation.

Unlike the EV/EBITDA multiple which is capital structure-neutral, the price-to-earnings ratio reflects the capital structure of the company in question

What does EPS mean?

Diluted EPS figure indicates the earnings per-share a business would have generated if all stock options and other sources of dilution that were currently exercisable are taken into account. This version has been normalised to exclude exceptional income and charges, better reflecting underlying results

What does ROCE % mean?

Return on Capital Employed (ROCE) compares earnings with capital invested in the company. It is similar to Return on Assets, but takes into account sources of financing. NOPAT is equal to EBIT * (1 - tax) -- the return on the capital employed should be measured in after tax terms. The main drawback of ROCE is that it measures return against the book value of assets so, as these are depreciated, the ROCE will increase even though cash flow is constant.

Stockopedia explains ROCE %...

A high double digit figure often means that the company has a defensible edge versus its competitors (e.g. a strong brand or a unique product). However, because ROCE measures return against the book value of assets, it's worth bearing aware that depreciation can flatter ROCE even though cash flow is constant. This is not the case with ROIC.

What does ROCE % mean?

Return on Capital Employed (ROCE) compares earnings with capital invested in the company. It is similar to Return on Assets, but takes into account sources of financing. NOPAT is equal to EBIT * (1 - tax) -- the return on the capital employed should be measured in after tax terms. The main drawback of ROCE is that it measures return against the book value of assets so, as these are depreciated, the ROCE will increase even though cash flow is constant.

Stockopedia explains ROCE %...

A high double digit figure often means that the company has a defensible edge versus its competitors (e.g. a strong brand or a unique product). However, because ROCE measures return against the book value of assets, it's worth bearing aware that depreciation can flatter ROCE even though cash flow is constant. This is not the case with ROIC.

What does Net Mgn % mean?

Also known as Return on Sales, this value is the Net Income divided by Sales for the same period and expressed as a percentage. This is one of the best indicators of the company's efficiency because net profit takes into consideration all expenses of the company. Investors want the net profit margin to be as high as possible.

Stockopedia explains Net Mgn %...

This is one of the best indicators of the company's efficiency because net profit takes into consideration all expenses of the company. Investors want the net profit margin to be as high as possible. Rising margins are seen as a positive signal although high margins do tend to attract the interests of competitors.

What does RS 1y mean?

1 year relative Strength measures a stock's price change over the last year relative to the price change of a market index (e.g the FTSE All Share). It shows the relative outperformance or underperformance of the stock in that timeframe.

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p> This figure is sourced from Thomson Reuters. It is calculated dividing the price change of a stock by the price change of the index for the same time period. e.g. A stock falling by 20% versus an index rising 20% would lead to a Relative strength calculation of 100 * ( 80/120 - 1) = -33%

Stockopedia explains RS 1y...

Research indicates that relative strength is a negative signal in the near-term but generally a positive indicator in the medium (6-24 months).

A study by Hancock found a momentum-based strategy outperformed a broad universe of U.S. stocks by nearly 4% per year from 1927-2009. Research has shown that momentum is particularly beneficial when combined with a value style because the two are negatively correlated. Moskowitz and Grinblatt conclude that "A value-momentum combination mitigates the extreme negative return episodes a value investor will face (e.g., the tech boom of the late 1990s and early 2000 or a dismal year like 2008)".

However, momentum-based strategies have been shown to suffer badly during times of extreme market volatility such as the 2008/09 crisis.