Stock Fundamentals Glossary
The essential ratios and metrics for evaluating stocks. Each metric is explained in plain English with scoring ranges used by Stock Analyzer.
Altman Z-Score
The Altman Z-Score predicts bankruptcy probability using financial ratios. Learn how Stock Analyzer uses it to assess financial distress risk.
Beta
Beta measures a stock's price volatility relative to the overall market. Learn how Stock Analyzer uses beta to assess investment risk.
DCF
DCF analysis estimates a stock's intrinsic value based on projected future cash flows. Learn how it works and what the scores mean.
Debt/Equity
The Debt-to-Equity ratio compares total debt to shareholder equity. Learn how Stock Analyzer uses it to assess financial leverage and risk.
Dividend Yield
Dividend yield shows the annual dividend payment as a percentage of the stock price. Learn how Stock Analyzer uses it to evaluate income-generating investments.
FCF Yield
Free cash flow yield shows how much cash a company generates relative to its market value. Learn how Stock Analyzer uses it to find cash-generating stocks.
Gross Margin
Gross profit margin shows the percentage of revenue remaining after production costs. Learn how Stock Analyzer uses it to assess pricing power.
P/B Ratio
The P/B ratio compares a stock's market price to its book value per share. Learn how Stock Analyzer uses it to find undervalued assets.
P/E Ratio
The P/E ratio compares a stock's price to its earnings per share. Learn what makes a good P/E ratio and how Stock Analyzer scores it.
P/FCF Ratio
The P/FCF ratio compares a stock's price to its free cash flow per share. Learn how Stock Analyzer uses it as a cash-flow-based alternative to the P/E ratio.
P/S Ratio
The P/S ratio compares a stock's price to its revenue per share. Learn how Stock Analyzer uses it to evaluate companies that aren't yet profitable.
Payout Ratio
The dividend payout ratio shows what percentage of earnings goes to dividends. Learn how Stock Analyzer uses it to assess dividend sustainability.
PEG Ratio
The PEG ratio adjusts the P/E ratio for growth. Learn how Stock Analyzer uses it to identify reasonably priced growth stocks.
Piotroski F-Score
The Piotroski F-Score rates a company's financial strength from 0-9 based on profitability, leverage, and efficiency. Learn how it works.
Price Target
The price target median compares analyst expectations to the current stock price. Learn how Stock Analyzer uses it to gauge market sentiment.
ROE
ROE measures how effectively a company generates profits from shareholder equity. Learn what a good ROE looks like and how Stock Analyzer scores it.
ROIC
ROIC measures how effectively a company generates profits from its invested capital. Learn what a good ROIC looks like.
Rule of 40
The Rule of 40 adds revenue growth rate to EBITDA margin. Learn how Stock Analyzer uses it to evaluate whether a company balances growth and profitability.
Sustainable Growth
The sustainable growth rate shows the maximum rate a company can grow without external financing. Learn how Stock Analyzer uses it to evaluate growth potential.