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What does P/B mean?

The price-to-book ratio, or P/B ratio, is a financial ratio used to compare a company's book value to its current market price and is a key metric for value investors. Book value denotes the portion of the company held by the shareholders; in other words, the company's assets less its total liabilities. This is calculated as the Current Price divided by the latest annual Book Value Per Share (The inverse ratio is known as book to market). We exclude preferred shares in the calculation of Book Value.

As with most ratios, it varies a fair amount by industry (companies that require more infrastructure capital will usually trade at P/B ratios much lower than, for example, consulting firms). P/B ratios are often used to compare banks, because most assets and liabilities of banks are constantly valued at market values. This version includes intangible assets and goodwill, unlike price to tangible book value. The price / book value ratio rarely falls below 1

Stockopedia explains P/B...

This is a key metric for value investors, whereas growth investors typically believe that book value reveals very little about a company's prospects for future performance.

The price / book value ratio rarely falls below 1.0. As with most ratios, it varies a fair amount by industry (companies that require more infrastructure capital will usually trade at P/B ratios much lower than, for example, consulting firms). P/B ratios are often used to compare banks, because most assets and liabilities of banks are constantly valued at market values.

A company that can't make an ROE greater than its cost of capital may be expected to have a low price to book. Therefore, look for a low PBV combined with a high ROE and low default risk.

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 Gwth % mean?

The earnings per share ratio divides the net annual earnings of a company into the number of shares. Earnings-per-share growth gives a good picture of the rate at which a company has grown its profitability. 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. Stocks with higher earnings-per-share growth rates are generally more desirable than those with slower earnings-per-share growth rates.

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 Op Mgn % mean?

Operating profit margin, also known as return on sales (ROS) is the ratio of operating profit (the amount that is left over after the variable costs of production such as wages, and raw materials have been paid) divided by sales. A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt.

Stockopedia explains Op Mgn %...

A company's operating margin is most meaningfully compared against other companies in its own industry, as they will likely share similar cost structures. It is a good way to compares the quality of a company's activity to its competitors, specifically the company's pricing strategy and operating efficiency.

What does Op Mgn % mean?

Operating profit margin, also known as return on sales (ROS) is the ratio of operating profit (the amount that is left over after the variable costs of production such as wages, and raw materials have been paid) divided by sales. A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt.

Stockopedia explains Op Mgn %...

A company's operating margin is most meaningfully compared against other companies in its own industry, as they will likely share similar cost structures. It is a good way to compares the quality of a company's activity to its competitors, specifically the company's pricing strategy and operating efficiency.

What does Debt To Assets mean?

This is a metric used to measure a company's financial risk by determining how much of the company's assets have been financed by debt. It is calculated by adding short-term and long-term debt and then dividing by the company's total assets. For example, a company with £2 million in total assets and £500,000 in total liabilities would have a debt ratio of 25%.

Stockopedia explains Debt To Assets...

The higher the ratio, the greater risk will be associated with the firm's operation. In addition, high debt to assets ratio may indicate low borrowing capacity of a firm, which in turn will lower the firm's financial flexibility. Like all financial ratios, a company's debt ratio should be compared with their industry average or other competing firms.

Companies with high debt/asset ratios are said to be "highly leveraged". A company with a high debt ratio could be in danger if creditors start to demand repayment of debt.

What does ROA % mean?

Calculated by dividing a company's annual earnings by its average total assets, ROA gives an idea as to how efficient management is at using its assets to generate earnings.

What does Industry Grp mean?

Thomson Reuters Business Classification - Industry Group Code