The core difference lies in the earnings component used in the calculation: whether it's based on past (trailing) earnings or future (forward) estimated earnings.
Posts published in “RATIO ANALYSIS”
Market Capitalization and Enterprise Value (EV) are both metrics used to assess a company’s value, but they offer different perspectives. Here’s a breakdown of the…
For investors looking beyond just current earnings to assess a stock's potential value, the Price/Earnings to Growth (PEG) ratio is an invaluable tool.
For investors seeking to understand a company's valuation, the Price/Book (P/B) ratio is a fundamental metric.
Understanding your unit economics is fundamental to the long-term sustainability and profitability of any business, regardless of its size or industry.
When evaluating a company for investment, investors often reach for familiar metrics like the Price-to-Earnings (P/E) ratio.
At its core, Return on Assets is a profitability ratio that reveals how much profit a company earns for every dollar of assets it owns.
Market capitalization (market cap) is a dynamic measure, representing the total value of a company's outstanding shares.
Capital employed is a crucial financial metric that represents the total funds invested in a company's operations, encompassing both equity and debt.
Financial modeling involves constructing spreadsheet-based models to project a company's financial performance and estimate its intrinsic value.
In order to ensure that business managers have the complete picture of a firm, considering other qualitative factors is a must-to-do job.
Investor Ratios measure how attractive public limited companies are investors. Dividend Cover is one of them.
Investor Ratios measure how attractive public limited companies are investors. Dividend Yield is one of them.
Investor Ratios measure how attractive public limited companies are for current and future shareholders to purchase. Dividend Per Share is one of them.
Investor Ratios measure how attractive public limited companies are for investors. P/E (Price/Earnings) is one of them.
Investor Ratios measure how attractive public limited companies are for investors. EPS (Earnings Per Share) is one of them.
Interest Cover measures how many times a business could pay its Interest on the borrowed capital out of its Net Profit Before Interest and TAX.
Gearing measures how much of the capital employed in a business is financed by long-term debt, or Long-term Liabilities.
Creditor Days measures the average number of days it takes a business to pay its suppliers who gave the business trade credit.
Debtor Days measures the average number of days it takes a business to collect money from its customers who bought products on trade credit.