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Showing posts from September, 2020

Adjusted diluted EPS (Earnings per Share)

Adjusted diluted EPS (Earnings per Share)  is net income adjusted for non-recurring costs and charges,  net of tax, divided by the weighted average number of outstanding shares in the period, assuming that all convertible instruments issued, along with employee stock options, are converted into shares.  Adjusted diluted EPS (Earnings per Share) better reflects the underlying performance of the business.   Adjusted diluted EPS (Earnings per Share) compares with analyst estimates, and is the base for commuting the P/E ratio.  You might be interested in: Diluted EPS (Earnings per Share) Basic EPS (Earnings per Share)

Basic EPS (Earnings per Share)

Basic EPS (Earnings per Share)  is given by the ratio between net income in the period less dividends paid on preferred shares, and the weighted average number of outstanding shares in the period.  Basic EPS (Earnings per Share) does not take into account possible future dilution due to the conversion of outstanding convertible instruments and employee stock options. You might be interested in: Diluted EPS (Earnings per Share) Adjusted diluted EPS (Earnings per Share)

Diluted EPS (Earnings per Share)

Diluted EPS (Earnings per Share)  is used when the company has issued financial instruments like convertible bonds and stock option that may put the company in the position of issuing new shares in the future.   Diluted EPS (Earnings per Share) is computed assuming that all convertible instruments issued, along with employee stock options, are converted into shares.  Diluted EPS (Earnings per Share) may be equal or lower compered the basic EPS. You might be interested in: Basic EPS (Earnings per Share) Adjusted diluted EPS (Earnings per Share)

EPS (finance)

In finance, EPS (earnings per share)  is the net income per outstanding share, representing the amount of net income available to common shareholders after the preferred stocks dividends have been paid. EPS is computed as a ratio between net income less the preferred stock dividend in the period, and the weighted average number of outstanding shares in the period. EPS is, along with its sustainability and growth, one of the fundamental variables to value a stock. You might be interested in: Diluted EPS (Earnings per Share) Basic EPS (Earnings per Share) Adjusted diluted EPS (Earnings per Share)

Volatility (finance)

In finance, volatility is the standard deviation of returns, that is the average dispersion of returns from the average return. Volatility takes into account the dispersione generated from both positive and negative returns. Volatility usually expresses the risk of an investment. All else being equal, the higher the  volatility , the higher the investment  risk. You might be interested in: Downside volatility Upside volatility Annual volatility Daily volatility

Upside volatility

  Upside volatility  is the volatility computed with only positive returns, that is returns that are higher than the average expected rate or return or, alternatively, the minimum acceptable rate of return. You might be interested in: Downside volatility

Downside volatility

Downside volatility is the volatility computed with only negative returns, that is returns that are lower than the average expected rate or return or, alternatively, the minimum acceptable rate of return. Downside volatility is commonly used to calculate the sortin o ratio.   

Annual volatility

Annual volatility  is the standard deviation of annual returns of a financial security, that is the average dispersion of annual returns from the average return. You might be interested in: Daily volatility

Dividend yield

The dividend yield  is the yield of a stock given by the ratio between the annual dividend per share and current market price per share. You might be interested in: Yield (finance)

Yield (finance)

In finance, yield is the cash return that an investor can expect from a financial security. With stocks, yield often refers to the dividend yield, while with bonds, yield is usually used to describe the yield that the bond holder can expect to receive if the bond is kept until maturity.  You might be interested in: Dividend yield Maturity (finance)

Daily volatility

Daily volatility is the standard deviation of daily returns of a financial security, that is the average dispersion of daily returns from the average return. You might be interested in: Annual volatility

Inorganic growth (business)

In business, inorganic growth is the growth that a company is able to achieve by acquiring resources and capabilities from other companies, through mergers and acquisitions (M&A). Inorganic growth is given by the contribution of acquisitions to the overall sales and revenue growth of the company.   You might be interested in: Organic growth (business)

Organic growth (business)

 In business, organic growth is the growth in sales and revenue that a company is able to manage leveraging its own resources and capabilities. Organic growth calculation strips out the effect of currency fluctuations as well as the bump in sales and revenue growth given by mergers and acquisition (M&A). Organic growth is commonly used to describe the underlying growth of a business. You might be interested in: Inorganic growth (business)  

Par (finance)

In finance, par  indicates the nominal value of a bond, that is the redemption value of the bond at maturity. Depending on market conditions, bonds can trade at par, below par or above par.   

Stake (finance)

In finance, a stake describes an ownership position in a company. In financial publications and press releases, the term stake is usually coupled with the monetary or percentage value of the position.

Break-even inflation

The  break-even inflation is the inflation rate expected by financial markets within a given time horizon.    The  break-even inflation rate is given by the difference between the yield of a treasury bond at a given maturity, and the yield of inflation-linked bonds like TIPS (Treasury Inflation Protected Securities) with the same maturity. 

Effective maturity

The effective maturity of a bond is the maturity of a bond weighted by the probability of being called at various call dates before maturity.  The effective maturity is often used with callable bonds and mortgage-backed securities (MBS), that are subject to prepayment risk. You might be interested in: Maturity (finance) Effective duration

Bearer bond

A bearer bond is a bond whose right to receive coupon payments and principal at maturity requires the physical ownership of the bond certificate. A  bearer bond  does not have any ownership record, so the holder of the bond is assumed to be owner.