Methodology and Calculation

This section provides a detailed breakdown of the financial calculations and methodologies used in the analysis of the company’s financial health and valuation. The financial metrics presented here are fundamental for assessing the company’s profitability, efficiency, liquidity, and overall market valuation.

Capitalization

Capitalization represents the total market value of a company’s outstanding shares. It is calculated as:

Market Capitalization = Number of Shares Outstanding × Share Price

Revenue

Revenue refers to the total income generated from the company’s operations before deducting any expenses.

Revenue = Gross Profit + Cost of Goods Sold (COGS) Gross Profit = Revenue - Cost of Goods Sold

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)

EBITDA measures a company’s operating performance before non-operational expenses are deducted.

EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization

Net Income

Net income is the company’s total profit after deducting all expenses, taxes, interest, and depreciation.

Net Income = Total Revenue - Total Expenses

Net Margin

Net margin represents the percentage of revenue that remains as profit after all expenses.

Net Margin (%) = (Net Income / Revenue) × 100

P/E Ratio (TTM) - Price-to-Earnings Ratio

The P/E ratio indicates how much investors are willing to pay per unit of earnings.

P/E Ratio = Share Price / Earnings Per Share (TTM)

P/S Ratio (TTM) - Price-to-Sales Ratio

The P/S ratio compares a company’s stock price to its revenue.

P/S Ratio = Market Capitalization / Revenue (TTM)

P/B (Price-to-Book Ratio)

P/B compares a company’s market value to its book value.

P/B Ratio = Market Price per Share / Book Value per Share

D/E Ratio - Debt-to-Equity Ratio

This ratio measures a company’s financial leverage.

D/E Ratio = Total Liabilities / Shareholders’ Equity

EPS Ratio (TTM) - Earnings Per Share

EPS represents the portion of a company’s profit allocated to each outstanding share.

EPS = Net Income (TTM) / Shares Outstanding

EV/EBITDA - Enterprise Value to EBITDA

EV/EBITDA helps assess a company’s valuation, considering debt and cash holdings.

EV/EBITDA = Enterprise Value / EBITDA

Enterprise Value (EV) is calculated as:

EV = Market Capitalization + Total Debt - Cash & Cash Equivalents

EBIT (Earnings Before Interest and Taxes)

EBIT represents a company’s profitability excluding interest and tax expenses.

EBIT = Revenue - COGS - Operating Expenses

Piotroski F-Score Analysis

The Piotroski F-Score is a nine-criteria scoring system used to evaluate a company’s financial strength. It assesses profitability, leverage, liquidity, and operational efficiency using various financial indicators.

Altman Z-Score Analysis

Altman Z-Score predicts the probability of bankruptcy using financial ratios. The formula is:

Z-Score = 1.2 × (Working Capital / Total Assets) + 1.4 × (Retained Earnings / Total Assets) + 3.3 × (EBIT / Total Assets) + 0.6 × (Market Value of Equity / Total Liabilities) + 1.0 × (Sales / Total Assets)

A Z-score below 1.8 indicates a high risk of bankruptcy.

ROE (Return on Equity, %)

ROE measures profitability relative to shareholders’ equity.

ROE (%) = (Net Income / Shareholders’ Equity) × 100

ROA (Return on Assets, %)

ROA evaluates how efficiently a company generates profit from its assets.

ROA (%) = (Net Income / Total Assets) × 100

Operating Margin (%)

Operating margin measures how efficiently a company converts revenue into operating profit.

Operating Margin (%) = (Operating Income / Revenue) × 100

Net Margin (%)

Net margin is the percentage of revenue retained as profit after all expenses.

Net Margin (%) = (Net Income / Revenue) × 100

Long-Term Debt / EBITDA

This ratio measures a company’s ability to cover its long-term debt using EBITDA.

Long-Term Debt / EBITDA = Total Long-Term Debt / EBITDA

Long-Term Debt / Assets

This ratio shows the proportion of long-term debt relative to total assets.

Long-Term Debt / Assets = Long-Term Debt / Total Assets

Long-Term Debt / Equity

This ratio evaluates the financial leverage of the company.

Long-Term Debt / Equity = Long-Term Debt / Shareholders’ Equity

Equity Ratio

The equity ratio measures the proportion of a company’s assets financed by shareholders’ equity.

Equity Ratio = Shareholders’ Equity / Total Assets

Quick Ratio

The quick ratio assesses a company’s ability to meet short-term liabilities without relying on inventory.

Quick Ratio = (Current Assets - Inventory) / Current Liabilities

Current Ratio

The current ratio indicates a company’s liquidity by comparing assets to liabilities.

Current Ratio = Current Assets / Current Liabilities

Net Working Capital

Net working capital represents a company’s short-term financial health.

Net Working Capital = Current Assets - Current Liabilities

Inventory Turnover Ratio

This ratio measures how efficiently a company manages inventory.

Inventory Turnover = Cost of Goods Sold / Average Inventory

Asset Turnover Ratio

Asset turnover assesses how efficiently a company uses its assets to generate revenue.

Asset Turnover Ratio = Revenue (TTM) / Total Assets

Book Value / Share Valuation

Book value per share reflects a company’s net asset value per share.

Book Value / Share = Shareholders’ Equity / Total Shares Outstanding

Graham Method Valuation

The Graham formula estimates the intrinsic value of a stock.

Intrinsic Value = EPS × (8.5 + 2 × Expected Growth Rate)

Discounted Cash Flow (DCF) Valuation

DCF estimates the intrinsic value of a company by discounting future cash flows.

Present Value of FCFs

PV FCF = ∑ (FCF t) / (1 + WACC)^t
Discounted Value = FCF t / (1 + r)^t

where:

r = discount rate (WACC)

Present Value of Terminal Value

PV Terminal = Terminal Value / (1 + WACC)^5
Intrinsic Value = PV FCF + PV Terminal
Intrinsic Value Per Share = Total Intrinsic Value / Shares Outstanding

Pearson Correlation

Pearson correlation measures the statistical relationship between two financial variables. It is calculated as:

r = (∑ (X - X̄)(Y - Ȳ)) / sqrt(∑ (X - X̄)² * ∑ (Y - Ȳ)²)

where:

X, Y = data points
X̄, Ȳ = means of the datasets

This correlation helps analyze the relationship between stock prices, financial ratios, or other key variables.

Prediction and Trend

The value for the "Next Quarter" is calculated based on the average of the last four quarters corresponding to the same period. This applies to both the dotted sections of line charts and the lighter-colored columns in bar charts.

About the MVPro™ Score

The MVPro™ Score (MarketVectors.Pro Valuation & Performance Score) is a proprietary scoring framework used to assess a company’s financial condition and investment attractiveness. It is built on a standardized set of key financial ratios across three core dimensions: valuation, profitability, and financial structure.

The score incorporates metrics such as the Price-to-Book Ratio, DCF valuation, Graham model, ROE, Gross Margin, Operating Margin, Debt-to-EBITDA, Equity-to-Assets, and liquidity ratios. Each metric is rated on 0–10 scale: (red) for weak performance, (yellow) for moderate, and (green) for strong. The total is converted into a percentage from 0 to 100, offering a clear and comparable summary of overall financial quality.

The MVPro™ Score enables investors to quickly evaluate a company’s strengths and weaknesses relative to fundamental benchmarks, supporting faster and more informed decision-making.