What are financial metrics ?
- Are the tools or indicators used to analyze the finance status of the company.
- To analyse a stock we use financial metrics.
Some of the metrics used in stock market are
- P/E Ratio (Price to Earnings)
- What you pay for every $1 of company profit.
- Stock price/Earnings per share i.e 10/1= 10
- High P/e ration means stock is overvalued.
- EPS (Earnings per share)
- Profit divided by the number of shares
- Profit/shares
- Divided Yield
- The yearly cash payout as a percentage of the price
- Yearly payout/Price.
- Revenue Growth
- How fast the business is growing.
- (New- old) /old.
- Price to Book(P/B)
- Price -What investors pay for one share
- Book Value- Company assets /debts.
- Price per share/Book value per share.
- PEG Ratio (Price compared with growth)
- P/e / Earnings growth rate.
- if PEG = 1 price and growth are in balance.
Will keep updating the list.
Halal App : Zoya
Charting software : TradingView
Screener : Finviz, TradingView
Brokerage Account : E-tore, Interactive Broker
