Magic Numbers for Stock Investors: How to Calculate the 25 Key Ratios For Investing Success

Magic Numbers for Stock Investors: How to Calculate the 25 Key Ratios For Investing Success


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Product Details

ISBN-13: 9780470821244
Publisher: Wiley
Publication date: 03/19/2004
Pages: 250
Product dimensions: 7.40(w) x 10.25(h) x 0.70(d)

About the Author

Peter Temple has spent 33 years working in or writing about financial markets. After an 18-year career in fund management and stockbroking, he became a full-time writer in 1988. He has written more than a dozen books about finance and investing, mainly aimed at private investors. His articles appear widely in the financial press. He and his wife live in part of a converted water mill in the English Lake District.

Table of Contents



Part 1: Valuation "Magic Numbers".

1. Price to Sales Ratio.

2. Price to Book Value.

3. Enterprise Value to Sales.


5. Peg Factor.

6. Price to Research Ratio.

7. Reinvested Return on Equity.

Part 2: Income Statement "Magic Numbers".

8. Sales, Earnings, and Equity Per Share.

9. Sales, Earnings, and Equity-per-share Ratios.

10. Staff Costs as a Percentage of Sales.

11. Directors? Remuneration as a Percentage of Net Income.

12. Sales and Profit Per Employee.

13. "Pro-Forma" Earnings.

14. Margins.

Part 3: Cash Flow Statement "Magic Numbers"

15. Operating Cash Flow/Operating Profit.

16. Price to Free-cash-flow Ratio.

17. Free Cash Flow (FCF) to Sales.

18. Return on Invested Capital.

19. Discounted Cash Flow.

Part 4: Balance Sheet "Magic Numbers" .

20. Current Ratio and "Acid Test".

21. Debtors Days and Creditor Days.

22. Stock Days and Stockturn.

23. Gearing.

24. Return on Capital Employed.

25a. Z-Score Components.

25b. The Z-Score.

Appendix: Finding the Information.


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