Here we explain major terms on our Key statistics block of the company page, for example, Apple Inc.
- Expected Return is a variable is used to determine whether or not an investment has a positive or negative average net outcome. Note that this is just an expectation and NOT a hard figure of profits or losses.
- Risks (Volatility) or Relative Volatility. It’s a measure of the dispersion of returns and calculated as the standard deviation of the series. If we are talking about securities, you can take daily closes for a specific period and calculate daily standard deviation for the period. The you need to normalize it, simply multiply it by SQRT(N) where N is a number of days. With the similar way, you can calculate weekly and monthly volatility.
Beta Coefficient. it’s a measure of the volatility in comparison to another asset or index. If we are talking about a comparison with the market index, then relative volatility called Beta. In terms of math the formula is quite easy:
- Cov – covariance between stock and market
- Var – variance of the market.
- You can use any security instead of the market in order to calculate relative volatility between two securities.
- Book Value is the total value of the company’s assets that shareholders would theoretically receive if a company were liquidated.
- PB Ratio or Price-to-Book Ratio is a ratio used to compare a stock’s market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter’s book value per share.
- Wall Street Price or one-year target price, is a projected price level as stated by a number of professional investment analysts and/or advisors.
- Earnings-per-share. The portion of a company’s profit allocated to each outstanding share of common stock. Earnings per share serve as an indicator of the company’s profitability.
- PE Ratio or Price-to-Earnings Ratio measures values of the company’s current share price relative to its per-share earnings.
- Social Rate is measured as an aggregate emotion of the crowd towards a particular company. The value is determined via Sentimental Analysis, the process that mines and processes information from public sources such as social media (e.g. Twitter) and news. Technically speaking, we monitor Twitter and News Media daily for positive and negative mentions of a given company. If positive emotions prevail, we consider the social rate to be positive. If negative emotions overcome the positive, we assign the Social Rate a negative rating.
- Short Ratio. A sentiment indicator that is derived by dividing the short interest by the average daily volume for a stock. This indicator is used by both fundamental and technical traders to identify the prevailing sentiment the market has for a specific stock.