GET Valuation Ratios

Common Shareholder’s Equity / Diluted Shares Outstanding

BookValuePerShare / Price

Ratio of outstanding shares that reduces the number of its shares on the open market.

Refers to the ratio of free cash flow to enterprise value. Morningstar calculates the ratio by using the underlying data reported in the company filings or reports- FCF /Enterprise Value.

Cash Flow from Operations / Average Diluted Shares Outstanding

CFOPerShare / Price

Diluted EPS / Price

A financial ratio that measures a company's return on investment (ROI).

Free Cash Flow / Average Diluted Shares Outstanding

1 / FCFYield If result is negative, then null

FCFPerShare / Price

Estimation of a year's dividend expressed as a percentage of current stock price.

(Current Dividend Per Share * Payout Frequency) / Price

Estimated Earnings Per Share / Price. Note- The “Next” Year’s EPS Estimate is used; For instance, if today’s actual date is March 1, 2009, the “Current” EPS Estimate for MSFT is June 2009, and the “Next” EPS Estimate for MSFT is June 2010; the latter is used. The eps estimated data is sourced from a third party.

1 / ForwardEarningYield If result is negative, then null

Smoothed ratio of price to earnings using a formula that normalizes the volatility.

Dividend per share / Diluted earning per share

1 / BookValueYield. If result is negative, then null

1 / CFYield If result is negative, then null

The number of years it would take for a company's cumulative earnings to equal the stock's current trading price, assuming that the company continues to increase its annual earnings at the growth rate used to calculate the PEG ratio.

ForwardPERatio / Long-term Average Earning Growth Rate

1 / Earnings Yield. If result is negative, then null

Change in price

Ratio of stock price to per share Earnings Before Interest, Taxes, Depreciation and Amortization.

1 / SalesYield. If result is negative, then null

Average ratio of price to earnings yield over five years.

Sales / Average Diluted Shares Outstanding

SalesPerShare / Price

ROE * (1 – Payout Ratio)

The company’s total book value less the value of any intangible assets dividend by number of shares.

The three year average for tangible book value per share.

The five year average for tangible book value per share.

Ratio of dividend yield plus the net share buyback percentage.

The opposite of forward divident yield

(Current Assets – Current Liabilities)/number of shares

The three year average for working capital per share.

The five year average for working capital per share.