would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc.. 
Home
Hello, Investors, How has your week been? Its has been a bloody mess hasnt it. Well I spent some time, and I made a list of formulas needed when your buying a stock for long term. Fundamentals.
I hope this will be beneficial for you, as I see new comers and the existing users in this forum have been asking frequent questions of what to be used before deciding to buy a stock. If your a day trader, this is not applicable to you,but still it would be worth to take a look. Happy Trading.
1. P/E RATIO = Market Value/ EPS
2. EARNINGS PER SHARE EPS = Net Income – Dividends on Preferred stocks/ Average Outstanding Shares
3. VALUE = EPS x Market Sector P/E Ratio
4. PEG RATIO= P/E RATIO/ Annual EPS Growth
5. Future forecast= Market Value/ Expected EPS
6. Net Asset Value= Total Asset- Total Liabilities
7. Price Book Value= Market Price/ Book Value (BV) , = Stock Price/ Total Assets-Intangible Assets &Liabilities
8. NAV per share + 8 X Annual EPS
9. Debt Equity= Total Liabilities/ Shareholders Equity
10. Debt Ratio= Total Liabilities/ Total Assets
11. Cash Conversion Cycle = Days Inventory Outstanding + Days Sales Outstanding – Days Payable Outstanding
12. Net Profit Margin%= Net Profit/ Sales Revenue x 100, = gross profit – expenses/ Sales Revenue x100
13. Gross Profit Margin%= Gross Profit/ Sales Revenue x100
14. Acid Test Ratio= Current Assets-Stocks/Current Liabilities
15. ARR%= AVG Annual Profit/Cost of Investment x 100
16. Current Ratio= Current Assets/ Current Liabilities
17. Profit= Sales Revenue- Operating Costs
18. Profit Margin%= Profit/Sales x100
19. Contribution= Selling Price – Variable Cost
20. Return On Assets= Net income/ AVG Total Assets
21. Return on Equity= Net income/ Shareholders Equity
22. Dividends Payout Ratio%= Dividend per Common Share/ EPS
23. Dividend Yield= Annual Dividend per Share/ Stock Price per share
24. Compound Annual Growth Rate – CAGR= ( Ending Value/ Beginning Value ) ^ (1/ No. Of Years ) – 1 x 100
I hope this will be beneficial for you, as I see new comers and the existing users in this forum have been asking frequent questions of what to be used before deciding to buy a stock. If your a day trader, this is not applicable to you,but still it would be worth to take a look. Happy Trading.
1. P/E RATIO = Market Value/ EPS
2. EARNINGS PER SHARE EPS = Net Income – Dividends on Preferred stocks/ Average Outstanding Shares
3. VALUE = EPS x Market Sector P/E Ratio
4. PEG RATIO= P/E RATIO/ Annual EPS Growth
5. Future forecast= Market Value/ Expected EPS
6. Net Asset Value= Total Asset- Total Liabilities
7. Price Book Value= Market Price/ Book Value (BV) , = Stock Price/ Total Assets-Intangible Assets &Liabilities
8. NAV per share + 8 X Annual EPS
9. Debt Equity= Total Liabilities/ Shareholders Equity
10. Debt Ratio= Total Liabilities/ Total Assets
11. Cash Conversion Cycle = Days Inventory Outstanding + Days Sales Outstanding – Days Payable Outstanding
12. Net Profit Margin%= Net Profit/ Sales Revenue x 100, = gross profit – expenses/ Sales Revenue x100
13. Gross Profit Margin%= Gross Profit/ Sales Revenue x100
14. Acid Test Ratio= Current Assets-Stocks/Current Liabilities
15. ARR%= AVG Annual Profit/Cost of Investment x 100
16. Current Ratio= Current Assets/ Current Liabilities
17. Profit= Sales Revenue- Operating Costs
18. Profit Margin%= Profit/Sales x100
19. Contribution= Selling Price – Variable Cost
20. Return On Assets= Net income/ AVG Total Assets
21. Return on Equity= Net income/ Shareholders Equity
22. Dividends Payout Ratio%= Dividend per Common Share/ EPS
23. Dividend Yield= Annual Dividend per Share/ Stock Price per share
24. Compound Annual Growth Rate – CAGR= ( Ending Value/ Beginning Value ) ^ (1/ No. Of Years ) – 1 x 100
