|   FM Home  |   FM Forum  |   FM News  |   FM Blog  |  

Go Back   Finance & Money Forums > Finance > Investing
 

Investing General discussions on investing and investments: shares, bonds, commodities, forex, and funds.

Reply
 
Thread Tools
  #1 (permalink)  
Old 10-28-2007, 06:02 PM
Senior Member
 
Join Date: Sep 2007
Posts: 113
Default share ratios continued

Return on capital
Current ratio
EBITDA
Discounted Cash flow

I Was wondering what the forumlaes where for these ratios

I am going to ask for companys accounts for shares i am looking at and work on these ratios etc as i think it will be a good learning curve.
Reply With Quote
  #2 (permalink)  
Old 10-29-2007, 12:16 PM
Senior Member
 
Join Date: Sep 2007
Posts: 188
Default Re: share ratios continued

ROC: (Profit/Loss) / (Shareholder Equity + Long Term-Debt)

Current Ratio: (Total Assets) / (Total Liabilities)

EBITDA = Earnings before interest, taxes, depreciation and amortization

You will get it from the financial reports of the companies.

Discounted cash-flow has a more complex formula.
Reply With Quote
  #3 (permalink)  
Old 10-29-2007, 03:38 PM
Senior Member
 
Join Date: Sep 2007
Posts: 113
Default Re: share ratios continued

would you divide EBITDA by EV to work out how healthy a company is . Is EBITDA gross profit essentially. and ROC is effectively gross profit / shareholders equity and long term debt.
Reply With Quote
  #4 (permalink)  
Old 10-29-2007, 04:46 PM
Senior Member
 
Join Date: Sep 2007
Posts: 188
Default Re: share ratios continued

I would never judge the health of a company based on EBITDA nor would I use fundamental analysis to analyze an equity but that depends on your investment strategy.

No, EBITDA is not gross profit and I gave you the formula to calculate ROC. It's not gross profit divided by shareholder equity and debt but it is profit or loss divided by shareholder equity + debt.
Reply With Quote
Reply


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Continued Isa delays at Nationwide Finance News Investing 0 09-27-2007 01:19 PM
Anybody can share their FX experiences? feline Investing 10 02-13-2007 07:32 PM
Continued downturn in the Australian dollar? aussieMike Investing 2 07-13-2006 04:51 PM


All times are GMT +1. The time now is 06:13 PM.


Powered by vBulletin® Version 3.6.8
Copyright ©2000 - 2008, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.1.0

© 2005-2006 Finance Markets. All rights reserved  |  About  |  Disclaimer  |  Resources  |  XML Feed  |  Contact us