Author: Helen Barklam
Helen Barklam is Editor of Investment Guide. Helen is a journalist and writer with more than 25 years experience. Helen has worked in a wide range of different sectors, including health and wellness, sport, digital marketing, home design and finance. Helen aims to ensure our community have a wealth of quality content to read and enjoy.
IntroductionBook value per share is a financial metric used to measure the value of a company’s equity. It is calculated by dividing the company’s total book value by the number of outstanding shares. Book value per share is an important measure of a company’s financial health and can be used to compare the value of a company’s stock to its peers. In this article, we will discuss how to calculate book value per share and provide examples to illustrate the calculation. We will also discuss the importance of book value per share and how it can be used to make…
IntroductionEarnings per share (EPS) is a key metric used to measure the profitability of a company. It is calculated by dividing the company’s net income by the number of outstanding shares of common stock. EPS is an important measure of a company’s performance and is used by investors to compare the profitability of different companies. In this article, we will discuss how to calculate EPS and provide examples to illustrate the calculation. We will also discuss the importance of EPS and how it can be used to evaluate a company’s performance.What is Earnings per Share (EPS) and How to Calculate…
IntroductionThe Price to Book Ratio (P/B Ratio) is a financial ratio used to compare a company’s current market price to its book value. It is calculated by dividing the current market price of a company’s stock by its book value per share. The P/B Ratio is an important tool for investors to assess the value of a company and its stock. It can be used to compare companies within the same industry or to compare a company to its peers. This article will explain how to calculate the P/B Ratio and provide examples of how to use it.What is the…
IntroductionThe Price to Sales Ratio (P/S Ratio) is a financial metric used to measure the value of a company relative to its sales. It is calculated by dividing the company’s market capitalization (the total value of its outstanding shares) by its total sales over a given period of time. The P/S Ratio is a useful tool for investors to compare the relative value of different companies in the same industry. In this article, we will discuss how to calculate the P/S Ratio and provide examples to illustrate the concept. We will also discuss the advantages and disadvantages of using the…
IntroductionNet profit margin is a key financial metric used to measure the profitability of a business. It is calculated by dividing the net profit of a business by its total revenue. This ratio is used to compare the profitability of different businesses and to assess the overall financial health of a company. In this article, we will discuss how to calculate net profit margin, as well as provide examples of how to use this metric to analyze a business. We will also discuss the importance of net profit margin and how it can be used to make informed decisions about…
IntroductionGross profit margin is a key financial metric used to measure the profitability of a business. It is calculated by subtracting the cost of goods sold (COGS) from total revenue and then dividing the result by total revenue. This ratio is expressed as a percentage and provides insight into how efficiently a business is generating profits from its sales. In this article, we will discuss how to calculate gross profit margin, provide examples, and explain why it is important for businesses to track this metric.What is Gross Profit Margin and How to Calculate it?Gross profit margin is a key metric…
IntroductionCost of equity is an important concept for investors and business owners alike. It is the rate of return that a company must pay to its shareholders in order to attract and retain their investment. Calculating the cost of equity is a complex process, but it is essential for understanding the value of a company and making informed decisions about investments. This guide will explain the basics of how to calculate cost of equity, including examples to illustrate the process.How to Calculate Cost of Equity Using the Capital Asset Pricing Model (CAPM)Calculating the cost of equity using the Capital Asset…
IntroductionCalculating the cost of debt is an important part of financial planning. It helps you determine the amount of money you will need to borrow and the interest rate you will pay for the loan. Knowing the cost of debt can help you make informed decisions about how to finance your business or personal needs. This guide will provide an overview of how to calculate the cost of debt, including examples to help you understand the process.How to Calculate Cost of Debt: A Step-by-Step GuideCalculating the cost of debt is an important part of financial planning. Knowing the cost of…
IntroductionWeighted Average Cost of Capital (WACC) is a financial metric used to measure a company’s cost of capital. It is the average of the costs of the different sources of capital, such as debt and equity, weighted by their respective proportions in the company’s capital structure. WACC is an important metric for investors and analysts to understand a company’s financial health and performance. In this article, we will discuss how to calculate WACC, with examples. We will also discuss the importance of WACC and how it can be used to make better investment decisions.What is Weighted Average Cost of Capital…
