Calculators

How to Calculate Gross Margin

Gross margin or “gross profit margin” is defined as the total revenue from sales for the company less its cost of goods sold, divided by total revenue from sales. Gross margin, then, represents the relationship between the company’s gross profit and its revenue from sales. The higher a company’s gross margin, the more [...]

Calculate and Interpret the Price-to-Book Ratio

The price-to-book ratio (P/B), also known as the “price-equity ratio”, is used to compare the book value of a company to its current market value. The measure can help gauge the relative value of a stock. A stock that is trading at a low price-to-book may be seen as undervalued, especially when its [...]

Calculate Unlevered Beta

The volatility of a stock is measured by its beta which represents the volatility of the stock in relation to the overall market. A stock with a beta value of 1.0 would move in correlation to the market. If the stock has proven to swing more widely than the market over time, its [...]

Calculate the Asset Turnover Ratio

The asset turnover ratio is used to measure the relationship the company assets and its revenues. The calculation provides an indication of how efficient the company is in leveraging its assets. High and/or improving asset turnover ratios are generally favorable for a company. A low asset turnover ratio can indicate efficiencies or obsolete [...]

Time and Intrinsic Value of Stock Options (includes calculator)

Stock options are contracts between two parties that provide the purchaser of the contract with the right, but not the obligation to buy (“call options”) or sell (“put options”) the underlying asset at a specified price before the agreed-upon expiration of the contract. The seller of the contract accepts the obligation to fulfill the [...]

Calculate Earnings per Share Growth Rate

Historically, earnings growth has been one of the primary drivers of stock price as investors have always preferred those companies with a track record of solid and consistent earnings growth. In fact, the best investments are often those companies that demonstrate a history of increased earnings despite changing market and economic conditions. For [...]

A Mutual Fund Calculator to Track Returns

A mutual fund is a professionally managed investment vehicle in which money is pooled from a large number of people for investments in securities that may include stocks, bonds, money market, or other types of securities. The manager of the fund oversees the trading activity within the fund to achieve the fund’s stated goals [...]

Calculate and Interpret the Altman Z-Score

The Z-score, also known as the Zeta Model or Altman Z-score is a financial formula used for predicting the possibility of bankruptcy for a company. Developed in 1968 by Edward Altman, the formula seeks to express the chances that a public company will go bankrupt within two years. The output number the model [...]

A Retirement Planning Calculator

Before you can develop a successful plan to build your retirement savings, you need to reasonably estimate how much money you will need to enjoy the kind of retirement you’re hoping for. Effective retirement planning takes into consideration the threat of inflation, which can erode your savings and jeopardize the lifestyle choices you will [...]

Calculate and Interpret the PEGY Ratio

The Price/Earnings to Growth and Dividend Yield (PEGY) Ratio is a variation of the price-to-earnings (P/E) ratio where a stock’s value is further assessed through a calculation that considers the company’s projected earnings growth rate and dividend yield. Once calculated, the figure is compared to ratios of the company’s competitors or against any group [...]