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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/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 Net Debt mean?

Net Debt is the sum of all short term debt, and notes payables, Long Term debt and preferred equity minus the total cash and equivalents and short term investments for the most recent reporting period. NOTE: This item is reported only for Industrial, Utility & Banking companies.

What does Yield % mean?

The dividend yield 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. It is calculated as the historic or consensus forecast Annual Dividend per Share, divided by the current Price, multiplied by 100.

Stockopedia explains Yield %...

In the absence of any capital gains, the dividend yield is the return on investment for a stock. A higher dividend yield is often considered to be desirable among many investors but it needs to be interpreted in light of the rest of the company's financials. <br/><br/> A high dividend yield may be considered to be evidence that a stock is under priced or alternatively it may be that the company has fallen on hard times and future dividends are at risk of being cut. Similarly a low dividend yield can be considered evidence that the stock is overpriced or an indication that future dividends may be higher. Many growth companies do not pay dividends, preferring to reinvest profits back into the business.

What does Industry Grp mean?

Thomson Reuters Business Classification - Industry Group Code

What does Is Primary Listing mean?

This indicates whether the company's main listing is in London. There are many dual listed companies on the London exchange who have their primary listing elsewhere. It's value is set to either 1 or 0 where 1 indicates a primary listing in London.

Stockopedia explains Is Primary Listing...

This can be a useful flag for identifying companies eligible for inclusion in tax efficient wrappers like ISAs and SIPPs.

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To filter for primary listed stocks in the relevant exchange, set this value equal to 1, or to find stocks that are primary listed elsewhere set this equal to zero.