100+ Key Equity Investing Ratios and Formulas - Simplified
RoI, RoE, EPS, P / E ratio, volatility, new high / new low, options premium, etc. - these are among the vital analytics of equity investing. Understanding the information and insights these ratios and formulas provide is critical for success in the stock market. This book simplifies more than 100 of the most important ratios and formulas used in making investing and trading decisions.
The ratios and formulas covered in the book span both fundamental and technical analyses. Each one is described in an easy-to-understand manner, broken down into simple steps.
A valuable feature of the book is that it also illustrates the correct use of the various ratios and formulas with the help of practical examples. For instance, there are so many different ways of calculating "profit" or "yield" or "return" that no uniform answer is valid in all situations. Thus, while their calculations are not difficult in themselves, it is important to understand:
- When to apply which ratio or formula - and how.
- The adjustments you need to make in the different formulas to obtain "comparable" results.
- How to cut through the complexity of corporate and mutual fund reports and correctly assess the often misleading claims made about the returns you can expect from different investment products.
This is a most useful and investor friendly guide and is organized in such a manner that every ratio or formula you'll ever need is available right at your fingertips, making it easy for you to apply them whenever you need to.
Key Stock Market Ratios and Formulas at Your Fingertips:
- Rates of return on investment - Return on invested capital, total return, etc.
- Return on capital - Return on equity, return on investing, etc.
- Leverage and risk analysis - P / E ratio, return on long options, etc.
- Long-tern trends - Breakeven return, compounding, accumulated value per period, present value, etc.
- Earnings and net worth adjustments - EPS, PEG ratio, etc.
- Fundamentals: Balance sheet tests you need to know - Market capitalization, book value per share, etc.
- Technicals: Price and volume calculations - New high / low ratio, advance / decline ratio, volatility, etc.
- Merging price and financial tests - Price to book value per share.
- Figuring out how taxation impacts your investments - Pre-tax and after-tax returns.