Stock index for valuation

posted-in:  Econ comments

hoge

1. EV/EBITA

EV

Enterprise value (EV) is a measure of the economic value of a company. It is considered to be a better valuation measure than market capitalization, since the latter doesn’t regard to the debt.

Earnings before interest and taxes (EBIT) indicate a company’s earning before interest, taxes, and depreciation. Earnings before interest, taxes, depreciation and amortization (EBITDA) indicates. $$ ~
\begin{align} \text{EBITDA} &= \text{(Income before income taxes)} + \text{(IE)} + \text{(DE)} + \text{(AE)}
&= \text{(Operating income)} + \text{(DE)} + \text{(AE)}

\end{align} $$

  • EBT: Earnings Before Taxes:
  • EBIT: Earnings Before Interest and Taxes
  • EBITA: Earnings Before Interest, Taxes, DEpreciation, and Amortization

: Amortization Expense

: Depreciation Expense

: Interest expense

Total Revenue

Cost of sales = Operating expenses + Operating cost + …

Gross profit = Total Revenue - Cost of sales

Selling, general and administrative expenses (SG&A) = Sales commission + Advertising expenses + Personal expenses + Depreciation + …

Research and Development (R&D) = …

Operating income = Gross profit - (SG&A + R&D)

Non-operating income = Interst income + Foreign exchange gains + Dividends income + …

Non-operating expenses = Interst expenses +Foreign exchange losses + Dividends income + …

Ordinary income = Operating income + Non-operating income - Non-operating expeneses

Extraordinary income =

Extraordinary loss =

Income before income taxes = Ordinary income + Extraordinary income - Extraordinary loss

Taxes = Corporation tax, residential tax and business tax + Income taxes-current …

Net income = Income before income taxes - Taxes

  • EBITDA = Earnings Before Tax + Interest + Depreciation + Amortization

: Amortization Expense

: Depreciation Expense

: Interest expense

Note that Market capitalization can be obtained from the Nikkei website, interest-bearing debt can be obtained from the Kaisha-shikihou, and cash equivalent can be obtained from the cash flow statement in the securities report that can be viewed using EDINET.

3. 株価収益率(PER)や、株価純資産倍率(PBR)