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Fundamentals
20 guides in Finabase Learn
- Enterprise value (EV) Market capitalization plus debt minus cash; a fuller measure of what it would cost to buy a whole business.
- EV/EBITDA Enterprise value divided by EBITDA, a valuation multiple that compares companies regardless of how they are financed.
- Fair value An estimate of what an asset is really worth based on its fundamentals, which may differ from its current market price.
- Find stocks with the Stock Master stock screener Build a stock screen in Stock Master from price, valuation, dividend, return and technical criteria, or describe it in words, then sort, limit and save it.
- Free cash flow (FCF) Operating cash flow minus capital expenditures: the cash a business generates that is left for owners and lenders.
- Fundamental analysis Evaluating a security by studying the business, its financial statements, industry and economy to estimate its intrinsic value.
- Gross margin Gross profit divided by revenue: the share of each sales dollar left after paying the direct costs of what was sold.
- Gross profit Revenue minus cost of goods sold, before operating expenses, interest and tax.
- Price-to-book ratio (P/B) Market price divided by book value per share, comparing what investors pay with the accounting net worth of a company.
- Price-to-earnings ratio (P/E) Share price divided by earnings per share: how many dollars investors pay for each dollar of a company’s annual profit.
- Price-to-sales ratio (P/S) Market capitalization divided by annual revenue: what investors pay per dollar of sales, often used for companies without profits.
- Retained earnings The running total of a company’s profits kept in the business rather than paid out as dividends, shown in shareholders’ equity.
- Return on assets (ROA) Net income divided by total assets: how much profit a company generates from everything it owns, regardless of how it is financed.
- Return on equity (ROE) Net income divided by shareholders’ equity: the profit a company earns on the money its owners have invested and left in the business.
- Return on invested capital (ROIC) After-tax operating profit divided by the debt and equity invested in operations: a measure of returns that is neutral to financing.
- Revenue The money a company earns from selling its goods and services in a period, before any costs are subtracted; the income statement’s top line.
- Shareholders' equity What a company would have left for its owners after paying every liability: total assets minus total liabilities, as shown on the balance sheet.
- Use the Finabase stock screener and screener builder on the web Run a ready-made screen or build your own on finabase.io from scope, ranking, fundamentals, indicator signals and candlestick patterns, then share or save it.
- Valuation The process of estimating what a company or security is worth, using cash-flow models, comparisons with similar companies or the value of its assets.
- Working capital Current assets minus current liabilities: the short-term cushion a company has to pay its bills over the next year from assets it can turn into cash.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.