Earnings yieldEarning yield is the quotient of earnings per share (E), divided by the share price (P), giving E/P. It is the reciprocal of the P/E ratio. The earning yield is quoted as a percentage, and therefore allows immediate comparison to prevailing long-term interest rates (e.g. the Fed model). ApplicationsThe earning yield can be used to compare the earnings of a specific company or group of companies across different sectors and industries against bond yields.
Financial statementIn finance and accounting, financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to understand.
Balance sheetIn financial accounting, a balance sheet (also known as statement of financial position or statement of financial condition) is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, a private limited company or other organization such as a government or not-for-profit entity.
Financial analystA financial analyst is a professional undertaking financial analysis for external or internal clients as a core feature of the job. The role may specifically be titled securities analyst, research analyst, equity analyst, investment analyst, or ratings analyst. The job title is a broad one: In banking, and industry more generally, various other analyst-roles cover financial management and (credit) risk management, as opposed to focusing on investments and valuation.
Price–earnings ratioThe price–earnings ratio (P/E ratio, P/E, or PER) is the ratio of a company's share price to the company's earnings per share. The ratio is used for valuing companies and to find out whether they are overvalued or undervalued.
RatioIn mathematics, a ratio () shows how many times one number contains another. For example, if there are eight oranges and six lemons in a bowl of fruit, then the ratio of oranges to lemons is eight to six (that is, 8:6, which is equivalent to the ratio 4:3). Similarly, the ratio of lemons to oranges is 6:8 (or 3:4) and the ratio of oranges to the total amount of fruit is 8:14 (or 4:7).AccountingAccounting, also known as accountancy, is the process of recording and processing information about economic entities, such as businesses and corporations. Accounting measures the results of an organization's economic activities and conveys this information to a variety of stakeholders, including investors, , management, and regulators. Practitioners of accounting are known as accountants. The terms "accounting" and "financial reporting" are often used interchangeably.
ShareholderA shareholder (in the United States often referred to as a stockholder) refers to an individual or legal entity (such as another corporation, a body politic, a trust or partnership) who is registered by a corporation as the legal owner of shares of the corporations share capital. Both public companies and private corporation have shareholders. Shareholders may also be referred to as members of a corporation.
CreditorA creditor or lender is a party (e.g., person, organization, company, or government) that has a claim on the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property or service to the second party under the assumption (usually enforced by contract) that the second party will return an equivalent property and service. The second party is frequently called a debtor or borrower.
PercentageIn mathematics, a percentage, percent, or per cent (from Latin'by a hundred') is a number or ratio expressed as a fraction of 100. It is often denoted using the percent sign (%), although the abbreviations pct., pct, and sometimes pc are also used. A percentage is a dimensionless number (pure number), primarily used for expressing proportions, but percent is nonetheless a unit of measurement in its orthography and usage.
Decimal separatorA decimal separator is a symbol that separates the integer part from the fractional part of a number written in decimal form. Different countries officially designate different symbols for use as the separator. The choice of symbol can also affect the choice of symbol for the thousands separator used in digit grouping. Any such symbol can be called a decimal mark, decimal marker, or decimal sign.Multiplicative inverseIn mathematics, a multiplicative inverse or reciprocal for a numberx, denoted by 1x{\displaystyle {\tfrac {1}{x}}} or x, is a number which when multiplied byx yields the multiplicative identity, 1. The multiplicative inverse of a fractionab{\displaystyle {\tfrac {a}{b}}} is ba.{\displaystyle {\tfrac {b}{a}}.} Dividing 1 by a real number yields its multiplicative inverse.*As an Amazon Associate I earn from qualifying purchases.