P/E Ratio
it stands for Price-to-Earnings ratio. P/E Ratio = Market Price per Share/Earnings per Share (EPS)
- High P/E Ratio: This often suggests that investors expect higher future growth from the company, so they’re willing to pay more for it now. Growth stocks, or companies with high future potential (like tech companies), usually have high P/E ratios.
- Low P/E Ratio: This may indicate that a stock is undervalued or that the company has slow or declining growth prospects. It could also suggest that the stock is out of favor in the market. Value investors, who seek stocks trading for less than their intrinsic value, often look for low P/E ratios.
Dividend Yield
It’s calculated by dividing the annual dividend per share by the current stock price Dividend yield = Annual Dividends per Share / Current Stock Price
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High Dividend Yield: This may be attractive to income-focused investors, as it suggests higher annual income relative to the stock price. However, a very high yield might also signal that the stock price has dropped significantly due to potential financial issues with the company.
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Low Dividend Yield: This could indicate either a lower payout or a higher stock price relative to dividends. Growth-oriented companies (like tech startups) often have lower dividend yields because they reinvest profits rather than paying them out as dividends.
留存收益 (Retained Earnings)
refers to the portion of a company’s net income that is not distributed to shareholders as dividends but is instead retained within the company. These retained earnings are used to reinvest in the business, pay off debts, or as a buffer for future financial uncertainties.
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Key Points:
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Formula:
留存收益=期初留存收益+净利润−分红留存收益 = 期初留存收益 + 净利润 - 分红留存收益=期初留存收益+净利润−分红
- 期初留存收益: Retained earnings at the beginning of the period.
- 净利润: Net income for the period.
- 分红: Dividends paid out to shareholders.