Metrics definition
What it measures:
A company's ability to generate free cash flow.
Why it matters:
It reflects a company’s financial health and is a valuable measure of its profitability and long-term growth prospects.What it measures:
A company's ability to cover interest payments and fulfil debt obligations. It also gives a summary of a company's liquidity position and capital structure.
Why it matters:
It helps investors determine a company’s financial position — whether its debt level is sustainable, and if it can meet its financial obligations.What it measures:
The degree of operating leverage present in a company’s business model, and the historical volatility of its operating margins.
Why it matters:
It helps investors determine the level of uncertainty a company’s business faces, which can significantly impact its performance and investment value.What it measures:
A company’s valuation if it is under-valued or over-valued. It also considers a company’s justified valuation relative to fundamentals, and current valuation relative to historical band.
Why it matters:
It provides investors with an idea of when to buy or sell an asset and how much they should buy or sell for.
What it measures:
A company’s performance across various ESG barometers given the shift towards sustainable investing.
Why it matters:
It helps investors determine a company’s long-term resilience and worth. Companies with better ESG performance are increasingly seen as less volatile and better positioned for the future.What it measures:
The sentiment of the market on a company by studying technical indicators, changes in short interests, and revisions to consensus estimates.
Why it matters:
As an investor, it helps you understand how share prices can be influenced by market sentiment and alerts you to price vs. reality difference.
What it measures:
A company’s ability to create value for shareholders.
Why it matters:
It is a way for a company to signal to investors its fundamental strength, financial health, and confidence in future growth prospects.
