Investment Metrics Guide
A reference guide to the metrics investors use to evaluate companies and markets — what each one measures, how it's calculated, its strengths and blind spots, and what to combine it with. No single metric tells the whole story; see how to analyze a company from multiple angles for how these fit together.
Valuation Metrics
PER, PBR, PSR, PCFR, EV/EBITDA, EV/EBIT, EV/Sales, dividend yield, earnings yield, PEG ratio, and intrinsic value.
Profitability Metrics
ROE, ROA, ROIC, operating margin, ordinary income margin, net margin, gross margin, EBITDA margin, contribution margin.
Financial Health Metrics
Equity ratio, current ratio, quick ratio, debt ratios, interest coverage, fixed asset ratio, cash ratio.
Growth Metrics
Revenue, EPS, operating profit, ordinary income, and net income growth rates, plus sustainable growth rate.
Efficiency Metrics
Asset turnover, receivables and inventory turnover, the cash conversion cycle, and fixed asset turnover.
Per-Share & Shareholder Return Metrics
EPS, BPS, DPS, payout ratio, total payout ratio, and buyback ratio.
Technical Indicators
Moving averages, MACD, RSI, stochastics, Bollinger Bands, Ichimoku Cloud, volume/VWAP, and more.
Risk Metrics
Beta, volatility, Sharpe and Sortino ratios, VaR, maximum drawdown, alpha, tracking error, correlation.
Macro & Market Environment Indicators
The VIX, yield curve, PMI, yield spread, the Buffett indicator, market breadth, and investor flow data.
Advanced Institutional Metrics
Active share, information ratio, factor exposure, free cash flow yield, EVA, earnings surprises, short interest, institutional ownership.