收益率计算公式英语
Introduction
The formula for calculating the rate of return, R = D1/P + g, estimates the expected rate of return for a company's stock. It represents the equity capital cost of the company. D1/P is the next period dividend yield, obtained through forecasting, and g is the dividend growth rate, which can be determined based on the company's historical dividend growth.
Summary:
Calculation of a single cash flow
Earnings per share calculation
Calculation of yield to maturity
Net income ratio calculation
Calculation of price-to-earnings ratio (PE)
1. Calculation of a single cash flow
PV = FV / (1 + ip)^n is the equation used to calculate the present value (PV) of a future cash flow (FV), with ip representing the interest rate and n representing the number of periods. It is commonly used in finance to determine the current value of a future cash flow.
2. Earnings per share calculation
The traditional formula for calculating earnings per share (EPS) is EPS = Net profit at the end of the period / Total shares outstanding at the end of the period. EPS highlights the amount of profit allocated to each share and is the basis for pricing stocks in the stock market based on the price-to-earnings ratio (PE ratio).
3. Calculation of yield to maturity
Yield to maturity (YTM) represents the total return anticipated on a bond if it is held until its maturity date. The formula for calculating YTM involves finding the discount rate that equates the present value of future cash flows (coupons and principal) to the bond's current market price. One method to calculate YTM is the interpolation method.
4. Net income ratio calculation
The net income ratio, also known as the net profit margin, is a financial ratio that reflects the profitability of a company. The formula for calculating the net income ratio is Net income / Sales revenue * 100%. It measures the company's ability to generate profit from its sales.
5. Calculation of price-to-earnings ratio (PE)
The price-to-earnings ratio (PE ratio) is a valuation ratio that compares a company's stock price to its earnings per share (EPS). It is calculated as the ratio of the market price per share to the earnings per share. The PE ratio is commonly used by investors to assess the relative value of a stock and determine if it is overvalued or undervalued.
In conclusion, the calculation of the rate of return is an important factor in evaluating the potential profitability of an investment. Understanding the various formulas and ratios used in calculating the rate of return allows investors to make informed decisions and assess the financial health of a company.