This guide explains key financial metrics to help you evaluate stocks and make informed investment decisions.
The current price represents the most recent trading price of a stock. It fluctuates throughout the trading day based on market demand and supply.
The PE Ratio (Price-to-Earnings Ratio) compares a company’s stock price to its earnings per share (EPS). A high PE Ratio (e.g., 39.98) may indicate that a stock is overvalued, while a low PE Ratio could signal an undervalued stock. Investors often compare this metric to industry peers.
The PEG Ratio considers a company’s earnings growth when evaluating its PE Ratio. A lower PEG Ratio (below 1) often indicates an undervalued stock, whereas a high PEG Ratio (e.g., 5.0) suggests overvaluation.
Dividends represent the percentage of a company’s earnings paid to shareholders. A dividend yield of 0.98% means that for every $100 invested, you receive $0.98 annually in dividends. Dividend-paying stocks can provide passive income.
The Cash to Debt Ratio measures how much cash a company has relative to its total debt. A ratio below 1 (e.g., 0.28) indicates higher debt compared to cash, which could mean financial risk. A higher ratio suggests strong liquidity.
Revenue Growth shows how much a company’s sales are increasing over time. A positive growth rate (e.g., 6.10%) suggests the company is expanding, while a negative rate may signal challenges.
Earnings Growth measures the company’s profit growth over time. A negative value (e.g., -3.36%) indicates declining earnings, which could be a red flag for investors.
The 52-Week Range shows the lowest and highest stock prices over the past year. For example, a range of (164.07 - 260.1) means the stock traded as low as $164.07 and as high as $260.1 within the last 12 months. Investors use this metric to assess stock volatility and potential price movements.