Fundamental Analysis & Valuation
6 terms
Fundamental Analysis & Valuation
Relative Valuation
Valuing a company by comparing its multiples with those of similar companies or with its own history.
Fundamental Analysis & ValuationReturn on Assets
Net profit as a percentage of total assets, measuring how much profit the asset base generates regardless of funding.
Fundamental Analysis & ValuationReturn on Capital Employed
Operating profit as a percentage of the total capital, both equity and debt, used to generate it.
Fundamental Analysis & ValuationReturn on Equity
Net profit expressed as a percentage of shareholders' equity, measuring what the business earns on the owners' capital.
Fundamental Analysis & ValuationReturn on Invested Capital
After-tax operating profit as a percentage of the capital actually invested in operations, excluding surplus cash.
Fundamental Analysis & ValuationRevenue Growth
The rate at which a company's sales increase from one period to the next.