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Fundamentals
TTM · vs peer median
Valuation
What you pay vs. what the business earns and owns.
P/E
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P/E
Price to earnings. What you pay today per dollar of last year’s profit. Lower = cheaper, but a fast-growing company can look expensive and still be a bargain.
P/S
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P/S
Price to sales. Useful when earnings are volatile or negative. Lower = cheaper relative to revenue.
P/B
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P/B
Price to book. Market value vs. accounting value of equity. Below 1× can signal a bargain or a broken business.
EV / EBITDA
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EV / EBITDA
Enterprise value vs. operating cash flow. Better than P/E across different capital structures.
Dividend yield
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Dividend yield
Annual dividend as a % of current share price. Higher = more income per dollar invested.
Growth
How fast the top and bottom lines are expanding.
Revenue growth (YoY)
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Revenue growth (YoY)
Year-over-year change in trailing twelve months of revenue. Measures top-line expansion.
EPS growth (YoY)
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EPS growth (YoY)
Year-over-year change in earnings per share. Captures bottom-line progress, including buybacks.
Revenue 5Y growth
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Financial health
Short-term solvency and leverage.
Current ratio
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Current ratio
Short-term assets ÷ short-term liabilities. Above 1 = can pay near-term bills from near-term assets.
Quick ratio
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Quick ratio
Like current ratio but excludes inventory. Stricter test of short-term solvency.
Debt / Equity
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Returns & margins
Capital efficiency and margin profile.
ROE
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ROE
Return on equity. Profits generated per dollar of shareholder capital. Over 15% sustainable = excellent.
ROA
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ROA
Return on assets. Profits generated per dollar of total assets. Captures capital efficiency regardless of debt.
ROIC
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Revenue 5Y growth
Cumulative revenue growth over the past five years. Shows durability of the top line.
EPS 5Y growth
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EPS 5Y growth
Cumulative EPS growth over the past five years. Separates one-off jumps from real compounding.
Debt / Equity
Total debt divided by shareholder equity. Higher = more leverage = more risk if business stumbles.
ROIC
Return on invested capital. Profits per dollar of debt + equity actually deployed. The cleanest efficiency metric.
Operating margin
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Operating margin
Operating income ÷ revenue. What’s left after running the business, before interest and taxes.
Gross margin
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Gross margin
Revenue minus cost of goods, as a %. High gross margin = pricing power or light cost structure.