Non-controlling interests, also called minority interests, represent the equity in a subsidiary that the parent company does not own, as reported in the consolidated financial statements. Non-controlling interests reflect the portion of a subsidiary’s net assets and net income attributable to other shareholders, known as minority shareholders. Note that if the parent company owns 100% […]
Category: Fundamental Analysis
Shareholders’ Equity refers to the net value of a company’s assets attributable to its shareholders after total liabilities are subtracted from total assets. It represents the shareholders’ ownership interest in the company. Shareholders’ Equity and Book Value generally reflect the same concept in most cases. However, for companies with Non-Controlling Interests (such as Intel), book […]
Preferred stock is a type of stock issued by a corporation that grants shareholders certain preferential rights. Holders of preferred stock have priority over common stockholders when it comes to profit distribution and company liquidation. This means that preferred stockholders receive dividend payments before common stockholders and have priority in the distribution of remaining assets […]
Enterprise Value (EV) is a metric used to measure the acquisition cost of a publicly traded company, representing the total value of the company. It takes into account both the company’s equity (ownership) and its debt. Enterprise Value is different from Market Capitalization. To calculate a company’s Enterprise Value, you add the company’s Market Cap […]
Profit margin indicates the ratio of a company’s profit to its total revenue, typically expressed as a percentage. Profit margin can be used to assess the operational performance of a publicly listed company and is an important metric for analyzing the company’s fundamentals. How to Calculate Profit Margin? Profit margin is one of the commonly […]
Earnings Per Share, abbreviated as EPS, indicates the ratio of a company’s net profit to its outstanding shares. It is a financial metric used to measure the profitability of each share of a publicly traded company. In practical application, the EPS calculation formula can be adjusted based on the company’s operating model. For example, the […]
Market Capitalization, often referred to as Market Cap, is derived by multiplying the total number of a company’s outstanding shares by its current stock price. It is an important financial metric for measuring the scale of a company’s operations. A company’s market cap changes constantly as its stock price or the number of outstanding shares […]
Profit is the remaining value of a company through its business activities over a certain period after deducting costs and expenses. It is one of the key indicators of a company’s financial health. Profit is mainly divided into three types: gross profit, operating profit, and net profit. In this article, you will learn how to […]
The Price-to-Sale ratio, or P/S ratio, is the ratio of the market cap to revenue. It is similar to the P/E ratio and is an important tool for valuing stocks. However, there are significant differences between the P/S Ratio and P/E Ratio. The P/S ratio is suitable for evaluating companies that are not profitable, cyclical, […]
P/E Ratio is an abbreviation of Price-to-Earnings Ratio, which represents the ratio of a company’s market capitalization to the company’s net profit, or it can be calculated by using the ratio of a company’s stock price to its Earnings Per Share (EPS ). The P/E ratio is one of the most widely used indicators for […]