⚠️ Not investment advice. This is a quantitative research tool; every decision is the user's own responsibility. Past performance does not guarantee future results.⚠️ Not investment advice. Past performance does not guarantee future results.
⚠️ Not investment advice. Past performance does not guarantee future results.
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Stock market metrics glossary

The 30 figures shown on every MeridIAn company page, explained in plain words: what they measure, how they are calculated, how to read them and what traps they hide. Each one comes with its real figures across the 2,130 companies in the ranking, by sector, with examples.

Valuation

P/E ratio (price / earnings)The P/E ratio tells you how many times a company's annual profit you pay when you buy its share.
Forward P/EThe P/E calculated with the earnings analysts expect for the next 12 months instead of the last 12.
PEG ratioThe PEG ratio relates the P/E to expected earnings growth.
EV / EBITDAIt compares what the whole company is worth, debt included, with what its business generates before interest, taxes, depreciation and amortization.
Price-to-book (P/B)It compares the share price with the book value (shareholders' equity) per share.
Price-to-sales (P/S)It compares the company's market value with its annual revenue.
Market capitalizationIt is what the company is worth on the stock market: the price of one share times all the shares in issue.
Enterprise value (EV)Enterprise value adds net debt to market cap.

Profitability

ROE (return on equity)ROE measures how much profit the company makes on each unit its shareholders have put in.
ROA (return on assets)ROA measures how much profit the company makes from everything it owns: its assets, whether paid for with shareholders' money or with debt.
ROIC (return on invested capital)ROIC measures the return on the money invested in the business, whether it comes from shareholders or from debt.
Gross marginGross margin is what is left of each sale after paying the direct cost of what was sold: raw materials, manufacturing or goods.
Operating marginOperating margin is what is left of each sale after paying all business expenses (staff, rent, marketing, research…) but before interest and taxes.
Net marginNet margin is the final profit left from each sale after paying everything: costs, expenses, interest and taxes.
Free cash flowFree cash flow is the cash the business generates after paying for what it must invest to keep running (plants, stores, equipment).
Free cash flow yieldOne year's free cash flow divided by the company's market value.
Cash conversionIt measures what share of accounting profit turns into real cash.

Solvency

Net debtNet debt is the company's financial debt minus the cash it holds.
EBITDAEBITDA is the business result before interest, taxes, depreciation and amortization.
Net debt / EBITDAIt tells you how many years the company would need to pay off its net debt from what its business generates, if it used all of its EBITDA for that.
Debt-to-equityIt compares the company's financial debt with its equity (what belongs to shareholders).
Current ratioIt compares what the company has in the short term (cash, receivables, inventory) with what it must pay within a year.
Quick ratio (acid test)Like the current ratio, but without counting inventory, which can take time to sell or be worth less than expected.

Growth

Revenue growthIt measures how much the company's revenue has changed from the previous year.
Earnings growthIt measures how much the company's profit has changed from the previous year.
EPS (earnings per share)Earnings per share split the company's net income across all its shares.

Dividend

Dividend yieldThe dividend the company pays in a year divided by the share price.
Payout ratioThe payout ratio is the share of profit the company pays out as dividends.

Risk and market

BetaBeta measures how much a stock moves when the market moves.
Price target and upsideThe price target is the average price analysts covering the company expect the share to reach in about 12 months.

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General information for educational purposes, not investment advice. Figures from the latest weekly analysis (Oct 8, 2026) with the latest available price.