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Return on capital employed (ROCE) Introduction Return on capital employed (ROCE) is a metric that helps investors compute the efficiency of a company’s use of its capital. ROCE is calculated as the ratio of net income divided by the average total assets of the firm. The average total assets is calculated by adding up all […]
Book Value of Share Introduction Book Value is the value of a company’s assets minus its liabilities. It is measured in terms of the net asset value, or NAV. The book value per share is calculated as follows: Book value of a company = Assets – Total Liabilities Book value per share (BVPS) = (Shareholders’ […]
CAGR Introduction Compound annual growth rate (CAGR) is a measure of the growth of an investment or business over time. It can be calculated in two ways: What Is Compound Annual Growth Rate (CAGR)? Compound annual growth rate (CAGR) is the compound annual growth rate over a given period of time. It’s also known as […]
Stocks Operating Margin Definition Stocks Operating profit margin is one of the most important metrics for a company. In fact, it’s often referred to as the “bottom line.” The operating profit margin measures how much net sales are left over after all expenses, including operating expenses and interest payments on loans (if applicable). This number […]
Profit Earning Ratio of Stocks Introduction What does the price of a stock say about its value? If you’re like most investors, you’d answer with one word: nothing. However, there are ways to evaluate stocks that can help put you in the right frame of mind as an investor. One of these ways is to […]