Explore essential financial terms and metrics to enhance your understanding of stock market data.
Market Metrics
Market Cap
The total market value of a company's outstanding shares, calculated by multiplying the current stock price by the total number of outstanding shares. It represents the company's total worth as perceived by the market.
Volume
The total number of shares traded during a specific period. Higher volumes often indicate higher interest in a stock and can signal important market movements.
Beta
A measure of a stock's volatility compared to the overall market. A beta greater than 1 indicates higher volatility than the market, while less than 1 indicates lower volatility. A beta of exactly 1 means the stock moves in line with the market.
Valuation Metrics
Trailing P/E
Price-to-Earnings ratio based on past 12 months of actual earnings. It's calculated by dividing the current share price by the trailing 12-month earnings per share (EPS). A higher P/E suggests investors expect higher earnings growth in the future.
Forward P/E
Price-to-Earnings ratio based on forecasted future earnings, typically for the next 12 months. It provides insight into how the market values expected future company performance.
Trailing EPS
Earnings Per Share calculated using the company's net income from the past 12 months divided by the total number of outstanding shares. It represents the portion of a company's profit allocated to each outstanding share of common stock.
Forward EPS
Projected Earnings Per Share for the next fiscal year, based on analysts' forecasts. It represents expected future profitability on a per-share basis.
Financial Performance
Total Revenue
The total amount of money generated by a company's business activities, before any expenses are deducted. It's the top line of the income statement and represents the gross income from all sources.
Gross Profits
The profit a company makes after deducting the costs associated with making and selling its products or services (Cost of Goods Sold). It's calculated by subtracting COGS from total revenue.
Return on Equity (ROE)
A measure of financial performance calculated by dividing net income by shareholders' equity. It shows how efficiently a company uses its equity to generate profits and is expressed as a percentage.
Return on Assets (ROA)
An indicator of how profitable a company is relative to its total assets. Calculated by dividing net income by total assets, it shows how efficiently management uses assets to generate earnings.
Dividend Information
Dividend Rate
The total amount of dividends expected to be paid out by a company over a one-year period, expressed on a per-share basis. It represents the annual cash flow shareholders receive from their investment.
Dividend Yield
The annual dividend payment expressed as a percentage of the stock's current price. It allows investors to compare the income generated from different stocks or other investments.