The key figures of a company
When you open a company in Stocks → Stocks, you see lots of numbers. These are the ones that really matter:
PriceWhat one share costs now. On its own, it doesn’t tell you if it’s cheap or expensive.
Market capPrice × number of shares. It’s what the company is “worth” on the market. Apple or NVIDIA are worth over 3 trillion dollars.
EPS (earnings per share)Company profit ÷ number of shares.
P/E ratioPrice ÷ EPS. How many years of profits you’re paying for. A P/E of 20 = you pay 20 times what it earns a year. High P/E = the market expects lots of growth (or it’s expensive).
Dividend and dividend yieldWhat it pays out per share each year, and that amount as a % of the price. 4 % means you get about €4 a year for every €100.
Revenue and net profitWhat it sells and what’s left after paying everything. Better if they grow year after year.
MarginWhat part of its sales is profit. A 25 % margin = of every €100 in sales, €25 is profit.
DebtHow much it owes. Lots of debt with high interest rates is dangerous.
BetaHow much it moves compared with the market. Beta 1.5 = if the market rises 10 %, it tends to move 15 %.
52-week high and lowThe price range over the last year.
VolumeHow many shares have been traded today.
Next earningsThe date the company will publish its results. On that day the share can move a lot.
Example: a share costs €100 and the company earns €5 per share → P/E = 100 ÷ 5 = 20.
If it pays a €3 dividend a year → dividend yield = 3 ÷ 100 = 3 %.
If it pays a €3 dividend a year → dividend yield = 3 ÷ 100 = 3 %.
Compare the P/E with other companies in the same sector, not with all of them. Tech companies tend to have high P/Es and banks low ones.