Value Stock Guide

  •  Login 
  • Articles
  • Subscribe

Increase Your Profits with Proven Value Investing Process

Hire Me Now »

Definitions of Investment and Stock Market Terms

Please refer to the basic stock market terms here.

The definitions here expand and augment the list referenced above. These definitions are of interest to intermediate and advanced readers, specially for practicing investors in the stock market. We go into sufficient detail necessary to make the concept clear, and give examples where necessary.

A

Acid Test Ratio
American Depositary Receipts
Average Collection Period
B

Balance Sheet. Balance Sheet Definition
BCG Matrix
Beta in Stocks
Blue Chip Stocks
Book Value
Book Value per Share
Business Life Cycle
C

Capital Asset Pricing Model (CAPM)
Cash Flow Statement
Corporate Spin-Off
Current Ratio
D

Days Sales Outstanding
Debt Ratio
Debt to Equity Ratio
Deflation
Diversification
Dividend Discount Model (DDM)
Dividend Payout Ratio
Dividend Yield
E

Earning Per Share (EPS)
Earnings Before Interest and Tax (EBIT)
Enterprise Value (EV)
Enterprise Value/EBIT
Ex-Dividend Date
F

Financial Ratios
G

Great Depression
H I

Income Statement
Interest Coverage
Inventory Turnover
Investment Portfolio
J

January Effect
K L

Liability
Liquidation Value
M

Market Value
Master Limited Partnerships (MLPs)
Modern Portfolio Theory
Mutual Fund
N O
P

P/E Ratio
P/B Ratio
PEG Ratio
Profit Margin
Q

Quick Ratio
R

Return of Capital
Return on Assets
Return on Equity
Risk Premium
S

SWOT Analysis
Stock
Stock Broker
Stock Index
Stock Market Game
Stock Options
Stock Warrants
T
U V

Value Premium
Value Stocks
W X, Y Z

Investing
  • stock market guide
  • price earning ttm
  • small cap stocks list
  • the great depression stock market
Popular Questions
  • beta is a measure of
  • what are warrants
  • how to calculate book value of equity
  • how to read stock charts
  • how to get involved in the stock market
Trending Topics
  • stock market commodity
  • stock market projects
  • best investing sites
Additional Resources
  • learn about stockmarket
  • best investment book for beginners

Earnings Before Interest and Tax

Shailesh Kumar By Shailesh Kumar on April 14, 2018

Earnings before interest and tax (EBIT) is the net income of a company before the tax expense and interest expense are taken off. EBIT is equivalent to Operating Income for companies that do not have non-operating income. In such cases, EBIT = Revenue – Operating Expense (OPEX) EBIT is a relevant measure for investors who… [Read More]

Investment Terms: Enterprise Value

Shailesh Kumar By Shailesh Kumar on April 14, 2018

<thrive_headline click tho-post-8073 tho-test-80>Investment Terms: Enterprise Value</thrive_headline>

Enterprise value can be thought of as a private market valuation for the company. When a buyer purchases a company in the private market, he has to pay for the company equity (including common stock, preferred shares, minority interest, etc), he has to pay off all the debt, but in return the buyer gets the… [Read More]

Investment Terms: What is Quick Ratio/Acid Test Ratio?

Shailesh Kumar By Shailesh Kumar on April 14, 2018

<thrive_headline click tho-post-8045 tho-test-83>Investment Terms: What is Quick Ratio/Acid Test Ratio?</thrive_headline>

Quick ratio measures the liquidity of the company. It is similar to current ratio but a bit more restrictive in what it considers to be liquid. Inventory is part of the current asset used for current ratio. However, it is explicitly excluded from the calculation of quick ratio. Quick Ratio, also called Acid Test Ratio… [Read More]

Investment Terms: What is Inventory Turnover?

Shailesh Kumar By Shailesh Kumar on April 14, 2018

<thrive_headline click tho-post-8043 tho-test-82>Investment Terms: What is Inventory Turnover?</thrive_headline>

Inventory turnover is used to indicate how many times a company sells its complete inventory in any given period of time. This measures the briskness of the business. Inventory turnover formula Inventory turnover = Cost of Goods Sold / Average Inventory Where, Average Inventory = (Beginning Inventory + Ending Inventory) / 2 A high inventory… [Read More]

Investment Terms: What is Enterprise Value/EBIT

Shailesh Kumar By Shailesh Kumar on April 14, 2018

<thrive_headline click tho-post-8042 tho-test-81>Investment Terms: What is Enterprise Value/EBIT</thrive_headline>

Enterprise Value/EBIT or EV/EBIT is a similar measure as P/E ratio. Instead of the Market Value, we use the Enterprise Value and instead of the Earnings in the denominator, we use EBIT. EV/EBIT = Enterprise Value (EV) / Earnings Before Interest and Tax (EBIT) (obviously) You may want to use EV/EBIT if you wish a… [Read More]

Master Limited Partnerships (MLPs)

Shailesh Kumar By Shailesh Kumar on November 8, 2017

<thrive_headline click tho-post-8416 tho-test-85>Master Limited Partnerships (MLPs)</thrive_headline>

The investment world is filled with trading opportunities outside of your traditional stocks and bonds. You may not have heard about them as much, but each one offers their own set of benefits and risks. Take, for example, a master limited partnership. A master limited partnership (MLP) is a publicly traded partnership that shares elements… [Read More]

Dividend Discount Model (DDM)

Shailesh Kumar By Shailesh Kumar on November 6, 2017

<thrive_headline click tho-post-8415 tho-test-69>Dividend Discount Model (DDM)</thrive_headline>

There are a lot of different methods for valuing stocks and determining a fair price for their shares. One of the oldest methods is the dividend discount model, commonly abbreviated to DDM. It’s a more theoretical model in a lot of ways, but can be helpful once you learn how to use it. Let’s dive… [Read More]

Modern Portfolio Theory

Shailesh Kumar By Shailesh Kumar on November 2, 2017

<thrive_headline click tho-post-8414 tho-test-86>Modern Portfolio Theory</thrive_headline>

With a constantly changing market, assessing the potential risks and rewards of and investment can be tricky. As you build your portfolio, you may be in search of the ideal investment that helps bring in a maximized return while minimizing risks. This type of investment is almost impossible find, but that hasn’t stopped people from… [Read More]

CAPM (Capital Asset Pricing Model)

Shailesh Kumar By Shailesh Kumar on October 31, 2017

<thrive_headline click tho-post-8413 tho-test-70>CAPM (Capital Asset Pricing Model)</thrive_headline>

What is CAPM & Why it Matters CAPM stands for Capital Asset Pricing Model. It is used to calculate the predicted rate of return of any risky asset. It compares the relationship between systematic risk and expected return. Typically, it’s used on stocks. However, CAPM can also be used throughout financial decision making to price… [Read More]

Stock Beta

Shailesh Kumar By Shailesh Kumar on October 29, 2017

<thrive_headline click tho-post-8120 tho-test-95>Stock Beta</thrive_headline>

Assessing and understanding the risks associated with investment is one of the biggest decisions an investor has to make. It’s important to know how to measure, understand and express the level of risk that you face when investing. One of the most common ways to do this is by using a statistical measure known as… [Read More]

Next Page »

Search or Browse Articles

  • Is Insider Buying of Stocks a Positive Sign?
  • Importance of Developing a Business Owner’s Mindset in Value Investing
  • How to Find or Calculate Book Value of a Company or Stock
  • How does Deflation and Inflation Compare?
  • How to be Successful in the Stock Market with Value Investing
  • How to do SWOT Analysis?
  • Return on Equity (ROE)
  • Investment Terms: Enterprise Value
  • Earnings Before Interest and Tax

Grow Your Wealth with Our Investment Expertise

  • VSG PERSPECTIVES: Make sound investment decisions: Get our perspectives on the markets and join a vibrant community of value investors

  • VSG PREMIUM: Invest with Me and Crush the Market (Number of Members Limited)

  • KINDLE BOOK: 5 Myths You Are Told About Investing: What good value investors know can significantly increase your profits in the stock market

  • KINDLE BOOK:26 Value Investing Case Studies (2011-2017)

Learn More & Connect

  • Blog/Articles
  • Write for Us
  • Press/Media
  • About Shailesh Kumar
  • Privacy
  • Charitable Foundation
  • Email Me
  • Call Me: +1 (707) 410-0645
  • Mailing Address: Value Stock Guide
    1327 Jones Drive Suite 106
    Ann Arbor, MI 48105
twitter Google+ FacebookLinkedin
  • Websites/Resources
  • 10 Best Investing Books
  • Value Investing Guide
  • Definitions
  • Schools

Grow your wealth with value investing today. We invest in undervalued stocks in the US stock market. All stock recommendations and stock advice are presented as investment ideas and the readers should conduct their own research or check with their investment adviser before acting on any idea presented here. Please note that value investing still carries customary investment risks and a long term and disciplined outlook is required. Value stocks, undervalued stocks, and value investing are concepts that describe an investment philosophy. When using Value Stock Guide for ideas or advice, you understand that this process is not an exact science and can vary from one value investor to another

© Copyright 2011-Present Value Stock Guide · All Rights Reserved