Earnings per share (EPS):Earnings available for common shares / Common shares outstanding = Profit after tax / weighted average common shares outstanding Earnings yield :Earnings per share / price per share EBITDA margin :Earnings before interest tax depreciation and amortization / Sales Economic Value Added (EVA) :EVA represents the economic value of the firm and is computed by subtracting the firm's cost of capital (in monetary terms) from the firm's adjusted operating profit (NOPAT). Positive levels of EVA indicate that the management has been adding value through Economic Value Added Return on Capital :EVA / Capital Effective interest rate:Interest rate that recognizes the nominal or annual interest rate plus the extra interest gained because of compounding. Efficiency ratios:Efficiency ratios indicate the management's ability at making use of the assets of the business towards profitability. Enterprise Value:The cost of buying the right to the whole of the enterprise's core cash flows. This is the estimated value of the core operations of the enterprise as represented by the value of the various claims on cash flows and profit. = Market capitalization + ne Equity capital: Stockholders' or owners' investments made in an organization. Expected return: Average return from the investment calculated as the probability weighted sum of all potential returns. |
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