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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 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 P/S mean?

A price-to-sales ratio, or a stock's market price per share divided by the revenue generated by sales of the company's products and services per share. Some argue that, since sales figures are less easy to manipulate than either earnings or book value, the price-to-sales ratio is a more reliable indicator of how the company is doing. However, this measure was misused during the dot com years to promote companies with no earnings or profits.

Stockopedia explains P/S...

Some argue that, since sales figures are less easy to manipulate than either earnings or book value, the price-to-sales ratio is a more reliable indicator of company value.

When EPS are negative or depressed temporarily the Price to Sales ratio can be a more useful indicator than the PE Ratio, and a low P/S can indicate a higher profit potential if the stock recovers. Some commentators have called it 'The King of the Value Factors' and look for P/S ratios of significantly less than 1.

It should be noted that the P/S ratio was abused during the dot com years to promote companies with no earnings or profits.

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.