Investment Metrics

Capitalization Rate (Cap Rate): Measuring Real Estate Investment Returns
Capitalization Rate (Cap Rate) is a metric used to evaluate the profitability of a real estate investment, typically calculated by dividing Net Operating Income (NOI) by the property's purchase price or value.
Income Gearing: Financial Leverage Measure
Income Gearing is a financial leverage measure that compares earnings before interest and tax (EBIT) to interest expenses, reflecting a company's ability to cover its interest obligations.
P/E Ratio: A Key Valuation Metric
The P/E Ratio, or Price/Earnings Ratio, is a valuation metric calculated by dividing the market price per share by the earnings per share (EPS). It provides insights into how much investors are willing to pay per dollar of earnings.
Price-Earnings Ratio: An Essential Metric for Investment Analysis
The Price-Earnings Ratio (P/E Ratio) is a critical financial metric used to evaluate the relative value of a company's shares by comparing its market price to its earnings per share.
Net Interest Margin: Definition, Formula, and Example
An in-depth exploration of net interest margin (NIM), including its definition, formula, calculation examples, and its significance in evaluating a firm's investment and debt decisions.
Nominal Rate of Return: Definition and Analysis
A comprehensive guide to understanding the nominal rate of return, its significance, calculation methods, and practical implications for investors.
Price-to-Sales (P/S) Ratio: Comprehensive Guide and Calculation Formula
An in-depth examination of the Price-to-Sales (P/S) Ratio, its formula, significance, and how it aids investors in identifying undervalued stocks for potential investments.
Return on Capital Employed (ROCE): Financial Ratio Analysis and Practical Examples
An in-depth guide to Return on Capital Employed (ROCE), discussing its calculation, interpretation, and practical examples to measure company profitability and capital efficiency.
Stock Market Cap-to-GDP Ratio: Definition, Formula, and Analysis
Explore the Stock Market Capitalization-to-GDP Ratio, a key metric for determining whether a market is under- or overvalued. Learn about its definition, formula, historical context, and practical applications.
Weighted Average Coupon (WAC): Definition, Calculation, and Significance in Mortgage-Backed Securities (MBS)
Explore the Weighted Average Coupon (WAC), a key metric for assessing the rate of return on a pool of mortgages within mortgage-backed securities (MBS). Understand its definition, how to calculate it, and its importance in the financial industry.

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