·
Price Earning Ratio – Share price (market price)
divided by earnings per common share.
·
Book Value Ratio – Share price divided by book value
per share.
·
Dividend Yield – Annual dividend on common shares
divided by the share price.
·
Payout Ratio – Annual cash dividend paid, divided by
net income less preferred dividends.
·
Cost of Equity – The risk free interest rate, plus (the
market risk premium rate times the individual stock’s beta).
·
Market Capitalization – Shares outstanding times the
share price.
·
Enterprise Value – Market capitalization, plus
preferred stock, plus interest bearing debt, less cash and cash equivalents
·
Beta – A calculation that measures the volatility of a
company’s stock price, against the volatility of stock market indexes.
·
Hurdle Rate – The rate that is needed to be achieved,
for an investment to be considered successful, or acceptable.
