This ratio is calculated by dividing total dividend paid to shareholders with the total income of the company in a particular year.
Computed as dividend per share divided by latest price, Dividend Yield (D/Y), is a widely used return measure. D/Y shows tangible payback to investors for investing in a company.
This refers to relationship of current (spot) price with future (forward price). If a spot price is higher than the future price of a commodity or financial asset, the structure of future price is referred to as backwardation.
This refers to relationship of current (spot) price with future (forward price). If a spot price is lower than future price of a commodity or financial asset, the structure of future price is referred to as contango.
Future prices refer to the price of a financial or a physical asset in a specified future time. Future contracts are legal agreement of buying or selling something at a pre-determined price and time.
This refers to amount of income a business earns after subtracting all operating, financial and regulatory (taxes) expenses from its revenues.
Yield curve plots relationship between yield or interest rate with future time duration or maturities for a borrower.
ROE is an important return or financial performance measure of a company and is computed as net income of a company divided by its shareholder equity or book value. The measure shows how efficiently the company is generating return or income on invested shareholder value.
This refers to total market value of a listed company and calculated as total outstanding shares of a company multiplied by latest price.
This refers to market value of shares available for trading or exchange of ownership. The Free Float measure excludes shares held by sponsor/s or promoter/s of a company from its total outstanding shares. Free Float Market Capitalization is a product of Free Float and latest market price of the listed company.
Price to Earnings Ratio (P/E Ratio) is a widely used benchmark for valuation in investment and calculated by dividing latest company’s price to its earnings. The ratio shows price investors are willing to pay for one unit of earnings. There are two types of P/E ratios: (1) Trailing P/E (based on latest annual earnings), (2) forward or prospective P/E ratio (based on forward or estimated annual earnings).
One divided by company’s P/E ratio is called earnings yield and refers to earnings per unit of share price. Earnings Yield is calculated in percentage term and allows comparison of company’s earnings with yields/return on bonds and dividend yield.