Measuring Stock Performance
An informed and prudent investor uses a variety of measures such as financial ratios, book value, earnings per share, return on equity etc. to evaluate the worthiness and prospects of stocks he/she would invest in. It is important for you as an investor to understand how these values are calculated and what they mean.
Use the following tables to assess the worthiness of Verticon stock as an investment.
Verticon Stock Data (Current and Historical)
2:12PM EDT Today
Price 18.85 USD
Change +0.64 (+3.51%)
Mkt cap 147.1B
Div/yield 0.20/4.24
Shares 8,012
Beta 0.70
Book/share 11.335
EPS 1.11
One year ago
Two years ago
Three years ago
(Millions of Dollars)
Total Assets 195,014 195,949 111,148
Total Liabilities 107,201 122,935 53,592
Preferred Shareholders’ Equity 52 61 73
Common Shareholders’ Equity 87,761 72,953 57,483
Shares Outstanding 8,012 8,070 6746
Book/Share ? 9.040 8.521
Q1 (this year)
Last year
Net profit margin 15.24% 12.24%
Return on equity 11.60% 9.30%
One of the most important features of a stock is its book value. The book value per share of Verticon’s stock last year was equal to .
Verticon’s book value per share has been since three years ago, a fact that reflects on the company’s overall growth.
Based on the given price and , you can determine that Verticon’s P/E is equal to