• The beta is a measure of a stock’s price volatility in relation to the rest of the market.
In other words, how does the stock’s price move relative to the overall market.
• Example: DNB
• .67
• Less than 1 means that the risk is lower than the market average
• Stocks that have a beta greater than 1 have greater price volatility than the overall market and are more risky.
• Stocks with a beta of 1 fluctuate in price at the same rate as the market.
• Stocks with a beta of less than 1 have less price volatility than the market and are less risky
• Risk also implies return. Stocks with a high beta should have a higher return than the market. If you are accepting more risk, you should expect more reward.
• Investors can find the best use of the beta ratio in short-term decision-making, where price volatility is important. If you are planning to buy and sell within a short period, beta is a good measure of risk.
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• The value at which an asset is carried on a balance sheet. To calculate, take the cost of an asset minus the accumulated depreciation.
Example: DNB & WFM
Read more: http://www.investopedia.com/terms/b
/bookvalue.asp#ixzz1nL4tw3S1
• 1. It is the total value of the company's assets that shareholders would theoretically receive if a company were liquidated.
2. By being compared to the company's market value , the book value can indicate whether a stock is under- or overpriced.
Read more: http://www.investopedia.com/terms/b/bo okvalue.asp#ixzz1nL59N9w6
• A valuation ratio of a company's current share price compared to its per-share earnings.
Calculated as:
• Market Value per Share
Earnings per Share (EPS)
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• For example, if a company is currently trading at $43 a share and earnings over the last 12 months were $1.95 per share, the P/E ratio for the stock would be 22.05
($43/$1.95).
Read more: http://www.investopedia.com/terms/p/priceearningsratio.asp#ixzz1nL7DuZPX
• portion of a company’s profit allocated to each outstanding share of common stock. For instance, a corporation that earned $10 million last year and has 10 million shares outstanding would report earnings of $1 per share.
Read more: http://www.answers.com/topic/earning
-per-share#ixzz1nL9pK2Cz