ANALYSIS TECHNIQUE

OVERVIEW
In this website, you will see some financial terms or ratios which we group as follows:

Market Value
Market Capitalization
Enterprise Value
Net Tangible Assets
 
Valuation Indicators
PE Ratio
EV / EBIT (or EBIT Multiple)
Forward Earnings & PEG Ratio
Dividend Yield
 
Assessing a Company’s Financial Strength
Net Cash
Gearing
Interest Cover
 
Efficiency Indicators
Capital Employed
Return on Equity
Return on Capital Employed
 
Other Useful Indicators
EBIT Margin
Tax Expense / PBT

These indicators when considered together will provide you with an idea of whether a company is cheap or expensive. Generally we consider a company cheap if it trades at low earnings multiple and has a low risk profile. In this website we use the concept of:
  • PE Ratio
  • EV / EBIT (EBIT Multiple)
  • Dividend Yield
as indicators of earnings multiple.

Risk in itself is a complex concept but in this website we only look at it in terms of gearing (or borrowing level). At a broader level, risk can also encompass share price volatility, business risks, market risks and systematic risk (overall stock market risk). We do not dwell into these areas.

Go to Market Value
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