DOCU stock ideas

Shares outstanding are all the shares of a corporation that have been authorized, issued and purchased by investors and are held by them. They are distinguished from treasury shares, which are shares held by the corporation itself, thus representing no exercisable rights.

Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity. Because shareholders' equity is equal to a company’s assets minus its debt, ROE is considered the return on net assets. ROE is considered a gauge of a corporation's profitability and how efficient it is in generating profits.

ROE = Net Income / Average Shareholder' Equity.

Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets. ROA gives a manager, investor, or analyst an idea as to how efficient a company's management is at using its assets to generate earnings.

ROA = Net Income / Total Assets.

Beta, primarily used in the capital asset pricing model (CAPM), is a measure of the volatility–or systematic risk–of a security or portfolio compared to the market as a whole.

A beta that is greater than 1.0 indicates that the security's price is theoretically more volatile than the market. A beta value that is less than 1.0 means that the security is theoretically less volatile than the market. And it is possible that some stocks can have negative betas

Free cash flow yield is a financial solvency ratio that compares the free cash flow per share a company is expected to earn against its market value per share. The ratio is calculated by taking the free cash flow per share divided by the current share price. Free cash flow yield is similar in nature to the earnings yield metric, which is usually meant to measure GAAP (generally accepted accounting principles) earnings per share divided by share price.

FCF/EV = Free Cash Flow Per Share / Market Price Per Share.

The cash ratio is a liquidity measure that shows a company's ability to cover its short-term obligations using only cash and cash equivalents.

Cash Ratio = Cash and Cash Equivalents / Current Liabilities.

The quick ratio measures a company's capacity to pay its current liabilities without needing to sell its inventory or obtain additional financing.

Quick Ratio = (Current Assets - Inventory - Prepaid Expenses) / Current Liabilities.

The current ratio is a liquidity measure that shows a company's ability to cover its short-term obligations using only current assets.

Current Ratio = Current Assets / Current Liabilities.

Price to earnings ratio (P/E ratio) measures the share price relative to the adjusted annual net income (trailing 12 months) due to common shareholders, per share.

P/E = Share Price / Earnings Per Share (EPS).

Price to earnings ratio (P/E ratio) measures the share price relative to the adjusted annual net income (trailing 12 months) due to common shareholders, per share.

P/E = Share Price / Earnings Per Share (EPS).

Price to earnings ratio (P/E ratio) measures the share price relative to the adjusted annual net income (trailing 12 months) due to common shareholders, per share.

P/E = Share Price / Earnings Per Share (EPS).

Price to earnings ratio (P/E ratio) measures the share price relative to the adjusted annual net income (trailing 12 months) due to common shareholders, per share.

P/E = Share Price / Earnings Per Share (EPS).

The price-to-sales ratio (Price/Sales or P/S) is calculated by taking a company's market capitalization (the number of outstanding shares multiplied by the share price) and divide it by the company's total sales or revenue over the past 12 months. The lower the P/S ratio, the more attractive the investment. Price-to-sales provides a useful measure for sizing up stocks.

The P/B ratio takes the share price and divides it by Book Value per share. It is a better ratio for evaluating loss-making companies.

P/B ratio = Share price / Book value per share.

PEG stands for P/E to Earnings Growth ratio. It factors in the company's forecasted earnings growth rate %, making it a better metric for valuing high growth companies.

PEG ratio = P/E ratio / Forecasted earnings growth rate

The gross profit margin, or simply gross margin, measures how much gross income or profit is generated as a percentage of revenue. It is the ratio of gross profits to revenues for a company or business segment. Gross profit margin is typically expressed as a percentage but can also be represented in decimal form. The gross profit margin illustrates how much of each dollar in revenue collected by a company translates into profit.

Gross profit margin = Gross Profit / Total Revenue

The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue. It is the ratio of net profits to revenues for a company or business segment. Net profit margin is typically expressed as a percentage but can also be represented in decimal form. The net profit margin illustrates how much of each dollar in revenue collected by a company translates into profit.

Net profit margin = Net Income / Total Revenue.

The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue. It is the ratio of net profits to revenues for a company or business segment. Net profit margin is typically expressed as a percentage but can also be represented in decimal form. The net profit margin illustrates how much of each dollar in revenue collected by a company translates into profit.

Net profit margin = Net Income / Total Revenue.

The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue. It is the ratio of net profits to revenues for a company or business segment. Net profit margin is typically expressed as a percentage but can also be represented in decimal form. The net profit margin illustrates how much of each dollar in revenue collected by a company translates into profit.

Net profit margin = Net Income / Total Revenue.

The payout ratio is a financial metric showing the proportion of earnings a company pays its shareholders in the form of dividends, expressed as a percentage of the company's total earnings. On some occasions, the payout ratio refers to the dividends paid out as a percentage of a company's cash flow. The payout ratio is also known as the dividend payout ratio.

DPR = Total Dividends / Net Income.

A company's debt ratio is a measure of the extent of its financial leverage. This ratio varies widely across industries. Capital-intensive businesses, such as utilities and pipelines tend to have much higher debt ratios than others like the technology sector.

Debt Ratio = Total Debt / Total Assets

The debt-to-equity (D/E) ratio is used to evaluate a company's financial leverage and is calculated by dividing a company’s total liabilities by its shareholder equity. The D/E ratio is an important metric used in corporate finance. It is a measure of the degree to which a company is financing its operations through debt versus wholly owned funds.

Debt to Equity Ratio = Total Liabilities / Total Shareholders' Equity

Net debt is calculated by subtracting a company's total cash and cash equivalents from its total short-term and long-term debt.

Net Debt = Long Term Debt + Short Term Debt - Cash and Cash Equivalents