Learn about the terms that used in moneycontrol - 2


1. Market cap :

Market capitalization is the total value of company's all shares. Market cap calculated by multiplying the price of a stock by total number of outstanding shares of that company. For example, a company with 50 lakh shares selling at 100 rupees a share would have a market cap of 50 crore rupees.


2. Dividend :

Dividends are payments made by a company to the company’s shareholders. That is the way for companies to distribute revenue back to investors, and one of the ways investors earn a return from investing in the stock.

Companies normally pay dividends in cash to the directly in shareholder’s brokerage account, though some pay dividends in new shares of stock instead. Companies may also offer dividend reinvestment programs, which allow investors to reinvest the dividend back into the company’s stock, often at a discount.

A company’s board of directors must approve each dividend. The company will announce the amount of the dividend, and the ex-dividend date when the dividend will be paid.

The dividend is not compulsory for the company. If the company’s board of directors decided to give dividend then the only dividend was given.

3. Dividend Yield :

The dividend yield is an important factor in determining the true value of dividend stocks. This fact holds especially true when investors are seeking to derive dividend income from their investments.

The dividend yield is an easy way to compare the relative attractiveness of various dividend-paying stocks. It tells an investor can expect the yield by purchasing a stock. The dividend yield is the relation between a stock’s annual dividend payout and its current stock price. The dividend yield is constantly changing because it is depending on how much a stock price moves during the day.

Most of companies pay a quarterly dividend that is somewhat predictable to investors. These companies typically pay a regular quarterly dividend around the same time every year. Many of these companies raise their dividends once a year for finding themselves on 10-year dividend increasers and Dividend Aristocrat lists.

To calculate dividend yield, basically the dividend yield formula used.

Dividend Yield Formula

For example, if stock XYZ had a share price of 100 rupees and an annualized dividend of 4 rupees, its yield would be 4%.

     4 / 100 = 0.04

When the 0.04 is put into percentage terms, it would make a 4% yield.

f this share price rise to 120, but the dividend payout was not increased, its yield would fall to 3.33%.

The dividend yield is always calculated using the annual yield. It is not calculated by using quarterly, semi-annual, or monthly payouts.


Learn about the terms that used in moneycontrol - 2

4. EPS(TTM) :

A company’s profits or earnings are divided by the total number of outstanding shares of stock to calculate the Earnings per Share (ttm). Earnings per Share is usually abbreviated as EPS and the “ttm” that follows stands for Trailing Twelve Months. This means that EPS (ttm) is the total earnings or profits the company has made over the last 12 months.

Earnings are reported quarterly every three months and most companies will report after the end of the calendar-quarters in April, July, October, and January. There are a few firms that report in between the calendar-quarters but they still do so in 3-month intervals.

5. P/C ratio :

Put-call ratio is an indicator commonly used to determine the mood of the options market. Being a contrarian indicator, the ratio looks at options buildup, helps traders understand whether a recent fall or rise in the market is excessive, and if the time has come to take a contrarian call. The ratio is calculated either based on options trading volumes or based on options contracts on a given day or period.

6. P/E Ratio(Price to Earnings Ratio) :

P/E Ratio or Price to Earnings Ratio is the ratio of the current price of a company’s share about its earnings per share (EPS). Analysts and investors can consider earnings from different periods for the calculation of this ratio; however, the most commonly used variable is the earnings of a company from the last 12 months or one year. It is also referred to as price multiple or earnings multiple.

P/E Ratio Formula

P/E Ratio = Current Market Price of a Share / Earnings per Share

7. Face Value :

Face value is the value of a company listed in its books and share certificate. The company decides the face value when it offers shares at the time of issuance. The face value of a share is fixed (until the company decides to split or reverse-split the shares).

8. Book Value :

The book value of a company is simply its assets minus its liabilities. This means the total value of its assets not including intangible assets with no immediate cash value, such as goodwill. Liabilities include monies owed and operating expenses.
So, Book Value = Assets - Liabilities.

In other words, if you wanted to close the doors of the business, how much money would be left after you settled all the outstanding obligations and sold off all the assets? That's the company's book value. A company that is growing business will always be worth more than its book value because of its ability to generate earnings and growth.

9. P/B ratio :

P/B ratio that is used to compare the market value of a stock to its book value is called price to book ratio or P/B ratio. P/B ratio is derived by dividing the current closing price of a share by the book value of a share in the latest quarter. The ratio is also recognized as the ‘price-equity ratio’ in the financial world.

The formula for calculating P/B ratio

P/B Ratio = market price per share/book value per share

Book value per share =  (Total Assets – Total Liabilities) / Number of shares outstanding


10. Industry P/E :

Industry P/E means that all company's P/E ratio of that industry.

11. Deliverables :

In the stock market, there are two types of orders.

               1. Intraday
               2. Delivery

The volume of the company for one day includes both delivery and intraday order volume.

Deliverables mean that percentage of total volume traded in delivery orders.

Formula for deliverables

Deliverables = (Delivery shares / Total volume) * 100

Thank You.
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