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.
- Fundamental AnalysisStudying a company's finances, industry, and management to judge whether its stock is fairly priced.
- Earnings Per ShareA company's profit divided by its number of shares, showing how much it earns for each share owned.
- Value StockShares that appear priced below what the company seems worth, which some investors buy hoping for a rebound.
- Market CapitalizationThe total value of a company's shares, found by multiplying the share price by the number of shares outstanding.
- Balance SheetA financial statement showing what a company owns, what it owes, and its net worth at a point in time.
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Plain-English education — not personalized legal, tax, or investment advice.