Financial Metrics and Ratios - EPS, PE Ratio, PEG Ratio, PB Ratio, DE Ratio, Current Ratio, Face Value, Free cash flow
Essential Key Financial Terms Before Investing in Company Stocks Investing in company stocks requires a strong understanding of key financial terms to make informed decisions. Here's a detailed explanation with examples for the essential financial terms you listed, organized into their respective categories: Financial Metrics and Ratios: Financial metrics and ratios are essential tools for analyzing a company's financial health, profitability, and operational efficiency. Here is a detailed explanation of the financial metrics: 1. Earnings Per Share (EPS): EPS indicates how much profit a company generates for each outstanding share of its stock. It is a direct measure of profitability on a per-share basis and is used by investors to assess financial performance over time. Earnings Per Share (EPS) is a financial metric that shows how much profit a company makes for each share of its stock. It is a way to measure a company’s profitability and indicates how much money sha...