A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Price-to-Earnings RatioA stock's price divided by its earnings per share, used to gauge whether it looks expensive or cheap.
- Payout RatioThe share of a company's earnings paid out as dividends, hinting at how sustainable those payments are.
- Fundamental AnalysisStudying a company's finances, industry, and management to judge whether its stock is fairly priced.
- Quarterly EarningsA company's profit report released every three months, closely watched for signs of its financial health.
- StockA share of ownership in a company that you can buy and sell, giving you a small stake in its profits and growth.
- ValuationAn estimate of what a company or investment is worth, used to judge whether its price is reasonable.
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