Formulario

Nome Formula

Percentage rate growth (Xt+1) - Xt / Xt

Working Capital WC = short term assets - short term

liabilities
or
WC = current assets - current liabilities

(shareholders’) Equity or Book value of Equity = tot. assets - tot. liabilities

equity

Market capitalization (market cap) MC = price per share * number of shares

Gross Profit GP = Revenues - Direct costs

Operating Income OI = Gross Profit - operating costs

EBIT EBIT = operating income + other income

EBIAT or Net Income EBIAT = EBIT - taxes

EBIAT = EBIT * (1- t)

Book value BV = Tot. tangible assets - tot. liabilities

Market value (of equity) or market MV = price of share * number of shares

capitalization

Market-to-book ratio (P/B ratio) P/B = Market capitalization/ book of equity

Price-to-book ratio

Enterprise Value EV = Market capitalization + debt (long and

short) - cash

Current Ratio CR= Current Assets/ Current Liabilities

Quick Ratio QR= (Current Assets + Account

Receivables) / Current Liabilities

Cash Ratio CR= (Cash + Cash equivalents) / Current

Liabilities

Inventory turnover IT= Sales/Inventory

Inventory days ID= Inventory/ (sales/365)

Account R. turnover ART= Sales/AR

AR days ARD= AR/ (sales/365)

Acc. Payable turnover APT= Sales/AP

Acc. Payable days APD=AP/(sales/365)

CCC (Cash Conversion cycle) CCC= ID + ARD - APD

Interests Coverage Ratio ICR= EBIT (or EBITDA) / interests

Debt-equity-ratio DER= total debt/ equity

Debt-to-capital ratio DCR= total debt/ (total debt + equity)

Net Debt ND= total debt - excess cash - short-term

investment

ND = equity + debt - cash

Debt-to-enterprise ratio DER= Net Debt / market cap + net debt

or

DER= Net debt/ enterprise value

P/E ratio (Price/earning ratio) P/E = market cap/ net income

P/E = share price/ earning per share

trailing P/E → used earning of the past year

forward P/E → used projected earnings

Equity multiplier (market) EM= EV/market cap

Equity multiplier (book) EM (b) = total assets / book value of equity

Gross margin % of gross margin relating to revenues

GM = gross margin/sales

Operating margin % of operating margin relating to revenues

Net profit margin % of operating margin relating to revenues

ROE (return on equity) Net income/equity

ROA (return on assets) EBITDA/ assets

ROIC (return on invested capital) EBITDA/ book value of equity + net debt

ROCE (return on capital employed) ROCE = EBIT/ (equity+debt liabilities)

Asset turnover (Efficiency of assets) AT= sales / total assets

Net Profit Margin (profitability of sales) NPM = Net Income/sales

Equity Multiplier (value of assets per dollar EM= Total assets / equity
of equity)

ROE ROE = NPM * AT * EM

ROE

ROA ROA = NPM * AT (profitability of assets)

ROE ROE = ROA * EM

Capital employed CE = equity + long-term debt

CE= total assets - current liabilities

EV to sales EV/sales

EV to EBIT EV/EBIT

EV to EBITDA EV/EBITDA

Present Value PV= FV/(1+r)

Future Value FV = PV*(1+r)

Rate r = FV/PV - 1

PV compounding PV= FV/(1+r)^t

FV compounding FV = PV*(1+r)^t

r compounding

EAR (from APR) - yearly EAR= (1+r/1)^1 - 1

EAR (from APR) - semiannual EAR = (1+ r/2)^2 - 1

EAR (from APR) - monthly EAR = (1+ r/12)^12 - 1

APR (from EAR) APR = k*(1+EAR)^1/k -1)

monthly discount (from a yearly rate) MD = (1+ r)^1/12 - 1

monthly rates MR = (FV/PV)^1/12 - 1

Discount yield % DY% = (FV - PV)* 360/ACT * 100%

ACT → actual number of days until maturity

PV of a stream
FV of a stream

PV (Perpetuity) PV = C/r

C (perpetuity) C= PV*r

PV (annuity)

FV (annuity)

C (annuity)

n (annuity)

PV (growing perpetuity)

PV (growing annuity)

Real rate of interest (adjusted with inflation)

RR= (r-i)/(1+i)

Rate adjusted with tax r= r*(1-t)

Coupon payments

YTM ZCB - one year YTM ( r ) = FV/PV - 1

YTM ZCB - n-years (FV/PV)^1/n - 1

PV coupon bond

Expected future value (corporate bond) Re = y - pL

Risk premium RP = Re - Rf

Yield corporate bond Y = Rf + Rp + pL

Er (Expected return on investment) Er = Rf + Beta* (Erm - Rf)

CAPM (capital asset pricing model)
Er = Sum pr*R

Volatility Standard deviation

SD = sqr VAR

Variance (VAR) VAR = Sum p * (R - Er )^2

Realized annual return

VAR (realized annual return)

Portfolio weight x = value of investment/value total

investment

Return on the portfolio R = r*weightA + rb*weight b….

WACC (weighted average cost of capital) WACC (Ru) = (E/EV)* Re + (D/EV)*Rd

(unlevered cost of capital)

Unlevered Beta BetaU = (E/EV)* Be + (D/EV)*Bd

CAPM for cost of capital Ru = Rf + Bu*(MRP)

After-tax WACC
Profitability index

Marginal income taxes MIT = EBIT * t

EBITDA or NOPLAT or Unlevered net EBITDA = EBIT * (1-t)

income

Free cash flow

Depreciation tax shield depreciation * t

Tax shield (tax benefit) TB = t * interests payment

PV interests tax shield PV = Debt * t