Knowledge Center

Fundamental Analysis

Earnings Per Share

Earnings per share (EPS) is a measure of a company's profitability and is calculated by dividing a company's earnings by the number of its outstanding shares.

Valuation Ratios

Investors can use valuation ratios to help them determine a company's investment value: price/earnings (P/E) ratio, PEG ratio, price to sales (P/S) ratio, price to cash flow ratio and price to book value (P/B) ratio.

Return on Investment

Return on Investment (ROI) is the profit you make when you sell your shares. It includes any income you earn on the investment plus the profit that you make on the sale.

Liquidity Ratios

Liquidity ratios are a set of ratios that measure a firm's ability to pay certain obligations like debt, short-term loans and even dividends. They include debt-to-equity ratio, interest coverage ratio, quick ratio, current ratio and dividend payout ratio.

Other Ratios

Other common ratios besides valuation and liquidity ratios include profit margins and turnover ratios.

Corporate Governance

A company's executives, board of directors and shareholders determine a company's governance - that is, the management, policies and procedures - that are used to run a corporation.

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