Finance Calculators (Page 25)

Mortgage, loans, investment returns, salaries tax, savings and more.

From market capitalisation, total debt and cash, compute the enterprise value (EV).

From the P/E ratio and the EPS growth rate, compute the PEG ratio to judge whether a valuation is justified by growth.

From enterprise value and total revenue, compute the EV/Sales (EV to Sales) multiple.

From the share price and operating cash flow per share, compute the price-to-cash-flow (P/CF) ratio.

From ROE and the retention ratio, compute the sustainable growth rate a company can sustain without issuing new equity.

From NOPAT and invested capital, compute ROIC: NOPAT ÷ invested capital × 100, the return on all capital (debt + equity) the business uses.

From operating profit and operating revenue, compute the return on sales (ROS), i.e. the operating profit margin.

From net margin, asset turnover and equity multiplier, decompose and compute the Return on Equity (ROE).

From beginning and ending EPS, compute the growth rate of earnings per share.

From net profit, equity and the required return, compute the residual income after the cost of equity capital.

Using CAPM, compute the cost of equity (the return shareholders require) from the risk-free rate, beta and market return.

Estimate the expected return (cost of equity) using the risk-free rate, beta and market risk premium.