Fundamental Analysis & Valuation
10 terms
Earnings Growth
The rate at which a company's profit increases from one period to the next.
Fundamental Analysis & ValuationEarnings per Share
Net profit attributable to equity shareholders divided by the weighted average number of shares outstanding.
Fundamental Analysis & ValuationEarnings Quality
The extent to which reported profit is backed by cash, is repeatable, and reflects the underlying business rather than accounting choices.
Fundamental Analysis & ValuationEarnings Yield
Earnings per share expressed as a percentage of the share price — the inverse of the price-to-earnings ratio.
Fundamental Analysis & ValuationEBITDA Margin
EBITDA as a percentage of revenue, measuring operating profitability before depreciation, interest and tax.
Fundamental Analysis & ValuationEconomic Value Added
The profit a business earns above the full cost of the capital employed to produce it.
Fundamental Analysis & ValuationEffective Tax Rate
The tax charge in the accounts expressed as a percentage of profit before tax.
Fundamental Analysis & ValuationEnterprise Value
The value of the whole business regardless of how it is financed, equal to market capitalisation plus net debt.
Fundamental Analysis & ValuationEV to EBITDA
Enterprise value divided by EBITDA, valuing the whole business against its operating cash generation before capital charges.
Fundamental Analysis & ValuationEV to Sales
Enterprise value divided by annual revenue, a capital-structure-neutral version of the price-to-sales ratio.