Stock market ratios

in #religion7 years ago

What is the definition of EPS Gwth %?
The Growth in Earnings per share as a percentage change over the last trailing twelve month period. 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 desired by investors than those with slower earnings-per-share growth rates, though in general high growth rates have a tendency to revert over the longer term to more stable growth rates.
What is the definition of P/FCF?
This is the share price of the company divided by the free cash flow. Free cashflow is the operating cashflow minus capital expenditures. A more detailed definition would be (Earnings before interest and taxes * (1-Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - Capital Expenditure)
Free Cashflow is the amount left over a company can use to pay down debt, distribute as dividends, or reinvest to grow the business.
This ratio is similar to Price to Earnings, but omitting purely "paper only" expenses. Some companies report high profits, but they can't turn those profits into cash! A company can't survive without cash, and if it can't generate it internally it will have to go to outside investors to support it, resulting in either share dilution or increased borrowing.

Sort:  

Source
Plagiarism is the copying & pasting of others work without giving credit to the original author or artist. Plagiarized posts are considered spam.

Spam is discouraged by the community, and may result in action from the cheetah bot.

More information and tips on sharing content.

If you believe this comment is in error, please contact us in #disputes on Discord

This user is on the @buildawhale blacklist for one or more of the following reasons:

  • Spam
  • Plagiarism
  • Scam or Fraud

@fredinjapan64 self votes are being countered by @sadkitten for 1 week starting Thursday, July 5th 2018, 4:34 because they are one of the highest self voters of the previous week. For more details see this post.