You are not signed in. Sign in.

List Books: Buy books on ListBooks.org

Magic Numbers: The 33 Key Ratios That Every Investor Should Know »

Book cover image of Magic Numbers: The 33 Key Ratios That Every Investor Should Know by Peter Temple

Authors: Peter Temple
ISBN-13: 9780471479246, ISBN-10: 0471479241
Format: Hardcover
Publisher: Wiley, John & Sons, Incorporated
Date Published: December 2001
Edition: (Non-applicable)

Find Best Prices for This Book »

Author Biography: Peter Temple

PETER TEMPLE was born in the North of England. He is a graduate in economics and statistics from the University of Wales, and is a Fellow of the UK Securities Institute. After an 18-year career as an investment analyst in fund management and investment banking, he turned to full time writing in 1988 as a freelance financial journalist and author.

His articles cover a wide variety of investing topics, and appear regularly in the Financial Times, Investors Chronicle, Shares, International Fund Investment, and in a number of other publications and financial web sites. In addition to Magic Numbers, John Wiley has published several of his other books, including Hedge Funds - The Courtesans of Capitalism, Private Equity and The New Online Investor.

Book Synopsis

Quickly and accurately calculate key investment ratios
Written by a leading finance expert, this book offers simple explanations on how to calculate and interpret key financial ratios. This information is essential for the accurate assessment of a company's financial condition and the true value of its shares. This book is packed with many worked examples from actual company reports and readers will also find many online reference sources-including company Web sites and free software offers. Plus, this book features a supporting Web site at www.magicnumbersbook.com. Magic Numbers is essential reading for individual investors and non-financial executives.

Table of Contents

Acknowledgments
Introduction
Pt. 1Market-based "Magic Numbers"1
1Market capitalization5
2Enterprise value9
3Price-earnings ratio14
4Dividend yield20
5PEG factor25
6Price to sales ratio31
7EV/EBITDA36
8Price/book value42
Pt. 2Income Statement "Magic Numbers"47
9Margins53
10Interest cover59
11Earnings per share64
12Dividend cover69
Pt. 3Balance Sheet "Magic Numbers"75
13Current ratio and acid ratio81
14Debtor days and creditor days86
15Stock days and stockturn92
16Gearing97
17Price/cash ratio103
18Burn rate109
19Return on capital employed114
20Return on average equity120
21Net tangible asset value126
22Premium/(discount) to NAV132
Pt. 4Cash Flow-based "Magic Numbers"139
23Free cash flow143
24Fixed asset spending/depreciation148
25Operating cash flow/operating profit153
26Price to free cash flow ratio157
Pt. 5Risk, Return, and Volatility "Magic Numbers"163
27Redemption yield/risk-free rate of return169
28Internal rate of return175
29Weighted average cost of capital180
30Discounted cash flow185
31Reinvested return on equity192
32Volatility199
33Sharpe ratio204
App.: Finding the information209
Index217

Subjects