Allows you to simplify the comparison of profitability for annual compound interest with different income accrual intervals (when interest is accrued several times a year at the annual compound interest rate)
The bid ask spread formula is the difference between the asking price and bid price of a particular investment. The bid ask spread may be used for various investments and is primarily used in investments that sell on an exchange.
The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders. The term "book value" is a company's assets minus its liabilities and is sometimes referred to as stockholder's equity, owner's equity, shareholder's equity, or simply equity.
Calculator and formula for calculating CAGR, average annual growth rate
The capital asset pricing model provides a formula that calculates the expected return on a security based on its level of risk.
The formula for the capital gains yield is used to calculate the return on a stock based solely on the appreciation of the stock. The formula for capital gains yield does not include dividends paid on the stock, which can be found using the dividend yield.
The formula for contribution margin is the sales price of a product minus its variable costs. In other words, calculating the contribution margin determines the sales amount left over after adjusting for the variable costs of selling additional products.
The Current Ratio provides a calculable means to determining a company's liquidity in the short term.
Current yield is a bond's annual return based on its annual coupon payments and current price (as opposed to its original price or face).
Used to measure a company's ability to handle its long term and short term obligations.
The formula for earnings per share, or EPS, is a company's net income expressed on a per share basis
The formula for estimated earnings is forecasted sales minus forecasted expenses
The formula for the future value factor is used to calculate the future value of an amount per dollar of its present value
Gordon Model is used to determine the current price of a security. The Gordon model assumes that the current price of a security will be affected by the dividends, the growth rate of the dividends, and the required rate of return by shareholders. Use the Gordon Model Calculator below to solve the formula.
The growing annuity payment formula using future value is used to calculate the first cash flow or payment of a series of cash flows that grow at a proportional rate
The formula for the interest coverage ratio is used to measure a company's earnings relative to the amount of interest that it pays
The payback period formula is used to determine the length of time it will take to recoup the initial amount invested on a project or investment
Used to compare a company's net assets available to common shareholders relative to the sale price of its stock
The price to earnings ratio is used as a quick calculation for how a company's stock is perceived by the market to be worth relative to the company's earnings
The formula for price to sales ratio, sometimes referenced as the P/S Ratio, is the perceived value of a stock by the market compared to the revenues of the company
The Quick Ratio is used for determining a company's ability to cover its short term debt with assets that can readily be transferred into cash, or quick assets
The receivables turnover ratio formula , sometimes referred to as accounts receivable turnover, is sales divided by the average of accounts receivables
The return on assets formula looks at the ability of a company to utilize its assets to gain a net profit