Investing Metrics Glossary
Plain-language explanations of metrics that come up often in US stock analysis, like P/E, ROE, and FCF. We cover definitions, formulas, and what a high or low value means (how to read it). All explanations are factual descriptions, not buy/sell recommendations.
How to read this
- New to this? — Reading just 'In plain terms' and 'What it tells you' for each term is enough to get oriented.
- Want more depth? — The 'Caution' box shows when a metric gets distorted and which metrics to read alongside it; the 'Story' box shows real historical cases.
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You can search by term name, alias (P/E), or one-line meaning. English abbreviations, full names, and market slang all work.
Type ‘story’ or tap the Stories only chip below to see only terms with a real historical case. Currently 161 terms (47 with stories).
Shortcuts — ‘Stories only’ filters to terms with a case; the rest jump to that group
Valuation
Metrics that gauge where the share price stands relative to earnings, assets, or revenue
PER (Price-to-Earnings Ratio)Story
A core valuation metric showing how many times earnings per share (EPS) a stock trades at.
PBR (Price-to-Book Ratio)Story
How many times book value per share (BVPS) the share price is — an indicator that views the share price against the company's net assets.
PSR (Price-to-Sales Ratio)Story
How many times annual revenue the market cap is — used for growth companies with little or no profit.
EV/EBITDA (Enterprise Value Multiple)Story
How many times EBITDA the enterprise value (EV) is — a valuation multiple that assesses a company including its debt.
Dividend YieldStory
What percentage a year's dividends are of the share price — the annual return you get from dividends when you own the stock.
DCF (Discounted Cash Flow)
A method that converts future earnings into present value and adds them up to estimate a "theoretical fair value."
PEG (Price/Earnings to Growth ratio)Story
PER divided by the earnings growth rate — a measure that looks at the share price level while factoring in the pace of growth.
Payout Ratio
What percentage of the profit a company earns is paid out as dividends — an indicator of the room for and sustainability of dividends.
Ex-Dividend
The cutoff date from which buying no longer earns you this dividend — the right to the dividend drops off, and the share price usually opens lower by roughly the dividend amount.
Dividend Growth·AristocratsStory
The degree to which a company has steadily raised its dividend year after year — companies with long records are called "Dividend Aristocrats."
FCF Yield
What percentage of market cap free cash flow amounts to — a way to view the share price level against the cash a company actually generates.
Profitability
Metrics that show how efficiently a company earns from its equity, assets, and revenue
ROE (Return on Equity)
A profitability metric showing what percentage of profit a company earned in a year on the capital shareholders put in (shareholders' equity).
ROA (Return on Assets)
How much a company earns with all the assets it holds — an indicator of asset efficiency including debt-funded assets.
ROIC (Return on Invested Capital)
How much the core business earns on the capital actually put into it — whether it clears the cost of raising that capital is a gauge of value creation.
Operating Margin
The share of revenue left as operating profit after core-business costs — the company's core-business profitability.
Net Margin
The share of revenue left as profit after subtracting all costs (operating, interest, taxes).
SBC (Stock-Based Compensation)
The cost of shares a company gives employees instead of cash — a non-cash expense that reduces earnings and dilutes shareholders' stakes.
Accruals Ratio (Accruals)Story
How large the gap between book earnings and actual cash is relative to assets — a quality measure for checking whether earnings are inflated.
Share Buyback (Buyback)Story
A company buying its own shares and retiring them — a shareholder return that reduces the share count and raises the value attached to each share.
Shareholder Return
Returning the money a company earns to its shareholders — two paths: dividends (handing out cash) and buybacks (reducing the share count).
Gross Margin (Gross Profit Margin)
Gross profit — revenue minus the direct cost of making the product (cost of goods sold) — as a share of revenue; the topmost layer of profitability.
Growth
Metrics that show how fast revenue and earnings are growing
Cash Flow
Metrics that look at the cash actually left over, not book profit
FCF (Free Cash Flow)Story
The cash actually left after subtracting capital expenditures from cash earned in the core business — the source for dividends, buybacks, and debt repayment.
FCF Conversion
How much of the net income on the books actually arrives as free cash flow (FCF) — a measure of earnings quality.
Cash Flow Statement
A statement that splits the cash actually coming in and going out into three parts — operating, investing, and financing — where you check whether book profit is real cash.
Stability
Metrics that look at debt burden and financial soundness
Debt-to-Equity Ratio (D/E)Story
How much debt a company carries relative to shareholders' equity — a measure of financial stability and leverage.
Net Debt to EBITDA
How many years of annual operating cash earnings (EBITDA) it would take to pay off net debt — a gauge of debt-repayment capacity.
Current Ratio
How many times the assets convertible to cash within a year cover the debts due within a year — a measure of short-term ability to pay.
Quick Ratio
How many times assets that can be turned into cash right away, excluding inventory, cover short-term debt — a stricter measure of ability to pay than the current ratio.
Interest Coverage
How many times a company could pay its interest with the operating profit it earned — a look at its capacity to carry debt.
Basics
Foundational concepts that other metrics build on
EPS (Earnings Per Share)
"The profit earned by one share" — net income divided by the number of shares outstanding; the denominator in the PER calculation.
Market CapStory
Current share price × shares outstanding — what the whole company would come to at today's price (the company's size).
TTM (Trailing Twelve Months)
A one-year figure obtained by adding up the four most recently completed quarters — a basis that smooths out quarter-to-quarter swings while staying up to date.
YoY (year-over-year)
A way of comparing this period with the same period a year earlier — the most basic comparison basis for seeing real growth with seasonal effects stripped out.
QoQ (Quarter over Quarter)
Comparing this quarter with the quarter right before it — catches the latest change quickly, but is affected by seasonality.
Forward · Trailing
Calculating a metric from past results makes it trailing; calculating it from future estimates makes it forward — the same PER has a different value depending on which one is used.
Blue Chip
A large, high-quality stock that has earned profits steadily over a long period — the nickname for a "dependable stock," taken from the highest-value blue chip in a casino.
Penny Stock
A very low-priced small stock (usually under $5 per share) — an area where volatility and the risk of manipulation or fraud are high, so beginners need extra care.
Shares Issued & Shares Outstanding (Shares Outstanding)
The total number of shares a company has issued — the base number that serves as the denominator for market cap, EPS, and many other metrics.
ADR (American Depositary Receipt)
A certificate that lets shares of a foreign company trade on U.S. exchanges — a route to invest in overseas companies through a U.S. account.
Financial Statement Basics
Basic financial statement line items and terms that serve as the ingredients for calculating metrics
CapEx (capital spending)
Money spent on long-lived facilities such as plants, machinery, and buildings — spending invested for the future.
EBITDA (earnings before depreciation and amortization)Story
Operating profit with depreciation and amortization added back — a profit measure closer to the cash the main business brings in.
Operating Cash Flow (OCF)
The cash a company actually brought in from running its main business — real money received, not book profit.
Accounts Receivable
Money not yet collected after selling goods or services — recorded as revenue, but the cash hasn't arrived.
Working Capital
Money tied up in running the business — current assets minus current liabilities, the funds needed for short-term operations.
GoodwillStory
The premium paid above the net asset value when buying another company — intangible value like brand and customers.
Net Debt
Total debt minus the cash on hand — the weight of debt after counting the cash that could pay it off right now.
BPS (Book Value Per Share)
Equity divided by shares outstanding — the book net assets contained in one share. The denominator of PBR.
Depreciation & Amortization (D&A)
Spreading the yearly decline in value of a long-lived asset out as an expense — an expense with no cash going out.
GAAP / Non-GAAP (adjusted earnings)
The difference between official earnings reported under the set accounting rules (GAAP) and the adjusted (Non-GAAP) earnings a company reports separately after excluding certain items.
Revenue
The total amount a company earns from selling products and services — the top line of the income statement, where all earnings and valuations start.
Operating Income
Revenue minus the costs of running the core business (cost of sales + SG&A) — profit that shows the strength of the main business before interest, taxes, and one-off items.
Net Income
The profit that finally remains after subtracting all costs, interest, and taxes from revenue — the very last line of the income statement (the bottom line).
Equity
What is left for shareholders after subtracting debt (liabilities) from all of a company's assets — the net assets that underpin ROE, PBR, and the debt ratio.
Total Assets
The sum of all economic resources a company holds — the whole household set up with shareholders' money (equity) and borrowed money (liabilities).
10-K / 10-Q (SEC Filings)
The results reports U.S. listed companies must file with the SEC — the 10-K is annual (audited), the 10-Q is quarterly. The source of our financial data.
Current Report (8-K)
A U.S. filing made right away when something major happens at a company, without waiting for the periodic reports — what happened is noted alongside as an «item number».
Risk Factors
The section of the annual report where a company itself writes «these are the risks in our business» — it is rewritten each year, so what was added and what was dropped stays on the record.
Segment Revenue (Segment Reporting)
A company disclosing revenue and profit broken out by business segment or region — under accounting standards it is reported by «the units management actually views separately».
20-F / 6-K (Foreign Issuer Filings)
The filings a foreign company listed in the U.S. submits instead of the 10-K and 10-Q — the 20-F annually and the 6-K as events arise, with no quarterly reporting requirement.
DEF 14A (Shareholder Meeting Proxy Statement)
The notice a company sends shareholders ahead of the annual meeting — what will be voted on and how much management is paid are written here.
ARS (Annual Report to Shareholders)
The annual report sent to shareholders along with the shareholder meeting notice — it overlaps with the 10-K, but it's a booklet made to be read.
11-K (Annual Report for Employee Stock Plans)
A separate annual report on how employee retirement and stock purchase plans ran that year — the star here is the «plan», not the company.
40-F (Annual Report for Canadian Companies)
The annual report filed by Canadian companies listed in the U.S. — the document prepared under Canadian rules is filed in the U.S. as is.
S-8 (Registration of employee stock compensation)
A filing that registers shares set aside for employees in advance — it states how many new shares the company has cleared for issuance.
Preferred StockStory
Stock that receives dividends first and in a set amount, but usually carries no voting rights — it sits between stocks and bonds in character.
Financial Statements (Balance Sheet, Income Statement, Cash Flow Statement)Story
Three tables showing a company's household books — what it owns (balance sheet), what it earned (income statement), and the cash that actually moved (cash flow statement).
Income Statement
A report card showing how much was earned and spent over a period — subtracting costs step by step from revenue to show how profit is formed.
Balance Sheet
A snapshot of assets at a single point in time, showing what a company owns (assets), what it owes (liabilities), and the shareholders' share (equity). "Assets = Liabilities + Equity".
Earnings & Market
Terms for reading earnings releases and the market expectations and outlooks surrounding them
Earnings Surprise
How much reported results (usually EPS) differ from market expectations (the consensus) — above it is a surprise, below it is a shock.
Consensus
The average of earnings and target estimates put out by analysts at multiple brokerages — the market's level of expectation gathered into a single number.
Guidance
The company's own outlook for next quarter's or the full year's results — the company's self-forecast that shapes market expectations and moves the share price.
Whisper NumberStory
An unofficial earnings expectation floating around the market, separate from the official consensus — even if results beat consensus, a stock can fall when they miss this hidden bar.
Earnings Call
A conference call where a company releases its quarterly results and management explains them directly and answers questions — the place where the context and outlook behind the numbers come out.
Extended-hours trading (pre-market and after-hours)
Trading that takes place before and after the US regular session — the hours when the market reacts first to earnings and news.
Macro & Economy
The macro environment outside individual companies that affects share prices and earnings — interest rates, prices, central banks
InflationStory
A general rise in prices — the value of money falls, affecting corporate costs, consumption, interest rates, and stock prices broadly.
Interest Rate (Policy Rate)
The price of borrowing money — the policy rate set by the central bank forms the base for loans, deposits, bonds, and how stocks are valued.
Fed (Federal Reserve)Story
The central bank of the United States — it sets the policy interest rate and adjusts the money supply to manage prices and employment, and its decisions move stock markets worldwide.
CPI (Consumer Price Index)Story
The headline measure of how much prices have risen, based on a basket of goods and services consumers buy — the core yardstick for measuring inflation.
Employment data (Nonfarm Payrolls, NFP)
An indicator of how many jobs were added in U.S. sectors excluding agriculture over the past month — a thermometer for the economy and a key basis for the Fed's rate decisions.
Retail Sales
An indicator of how much consumers spent in stores and online over a month — it shows the strength of consumption, which makes up about 70% of the economy.
Consumer Sentiment Index
A survey-based gauge of how optimistic or pessimistic consumers feel about the economy and their own finances — a window into spending ahead.
PPI (Producer Price Index)
A measure of how much the prices companies receive when they make and sell goods (producer-level prices) have risen — the stage before consumer prices (CPI).
PCE (Personal Consumption Expenditures Price Index)
A price gauge based on what consumers actually spend — the measure the Fed weighs most when judging its inflation target (2%).
GDP (Gross Domestic Product)Story
The total value of all goods and services a country produces over a given period — the broadest gauge of an economy's size and growth pace.
PMI / ISM (Purchasing Managers' Index)
An index built from surveys of corporate purchasing managers about business conditions — above 50 means expansion, below 50 means contraction. A leading indicator for reading the direction of the economy quickly.
Jobless Claims
The number of people who newly filed for unemployment benefits in a week — the fastest employment indicator, released weekly, catching cracks in the labor market early.
Reserve Currency
The currency used as the standard for international transactions and foreign reserves — currently the US dollar. That is why US interest rates and policy move markets worldwide.
Exchange Rate
The rate at which two countries' currencies trade — when your home currency weakens against the dollar, the home-currency value of your US stocks changes too, so it directly affects investors outside the US.
Carry TradeStory
Borrowing money in a low-rate country and investing it where rates or returns are higher to capture the gap — the Japanese yen is the classic example (yen carry). When it unwinds, markets shake.
Quantitative Easing & Tapering (QE·Tapering)Story
A policy in which a central bank buys large amounts of government bonds and other assets to put money into the market (quantitative easing), and the gradual reduction of those purchases (tapering).
Yield Spread and Inversion (Yield Curve)Story
The gap between long-maturity and short-maturity Treasury yields — long-term is usually higher, and when short-term rises above it (inversion), it is read as an early warning sign of recession.
U.S. Treasuries (Treasury)Story
Bonds the U.S. government issues to borrow money — regarded as the world's safest asset, and used as a reference point for interest rates and stock markets.
Soft Landing / Hard LandingStory
If the central bank raises rates to tame inflation while avoiding a recession, that is a soft landing; if the economy turns down sharply, that is a hard landing.
Corporate Events
Corporate and market events that affect share prices and shareholder ownership, such as short selling, share offerings, and mergers and acquisitions
Short Selling (공매도)Story
A trade in which you borrow shares, sell them first, then buy them back later at a lower price to return them and pocket the difference — a way to bet on a price decline.
Equity Offering / Dilution
A company issuing new shares to raise money — the share count rises, so each existing shareholder's slice (stake) is thinned out.
Shelf Registration
Registering in advance so the company can issue stock or bonds later — the registration itself is not an issuance, just the "right to pull it off the shelf when needed".
Mergers and Acquisitions (M&A)
One company buying another (acquisition) or two companies combining into one (merger) — it grows size at once, but paying a high price can also reduce value.
S-4 (Registration Statement for Mergers and Share Exchanges)
A registration document filed with the SEC when a company issues new shares, instead of cash, as consideration in a merger or acquisition — it contains the exchange ratio and the terms of the deal.
S-1 (Securities Registration Statement)
The registration document filed before selling new shares — first filed at the IPO, and again each time new shares are sold afterward.
Form 4 (Insider Trading Report)
A filing made within two days when a company's officers, directors, or 10% shareholders buy or sell their own company's stock — each transaction carries a code showing «what kind it is».
13F (Institutional Holdings Report)Story
A holdings list filed each quarter by institutions managing large sums in the US — it reflects quarter-end positions and becomes public up to 45 days after that quarter ends.
Beneficial Ownership Report (13D / 13G)
A report filed when one investor holds more than 5% of a company's voting shares — 13D if they intend to influence management, 13G if it is purely an investment.
Private Credit
Loans made directly to companies by private funds and similar lenders, instead of by banks or through public corporate bonds — fast and flexible, but at relatively high interest rates.
Short Covering
A short seller buying back shares to return what was borrowed — when this buying piles up, it can push the price higher and lead to a short squeeze.
Stock SplitStory
Dividing one share into several to lower the per-share price — the company's value stays the same, only the share count rises, making it easier to trade.
IPO / Listing (Initial Public Offering)
When a private company offers and lists its shares to the general public for the first time — the starting point at which anyone can buy that stock.
Spin-off (corporate separation)
A company carves out one business unit and separates it into an independent, separately listed company — existing shareholders receive shares of the new company.
Market Trends & Sentiment
Terms describing the overall mood and direction of the market and investor sentiment, such as bull markets, corrections, and short squeezes
Short SqueezeStory
When a heavily shorted stock rises instead, short sellers rush to buy back shares to limit losses, pushing the price up even further.
Bull Market and Bear Market
A phase when stock prices generally rise is a bull market, and a phase when they fall is a bear market — a drop of about 20% from the peak is commonly used as the bear market threshold.
Correction
A phase where the share price falls about 10% from its peak over a short period — shallower than a bear market (20%↓), and commonly seen as a pause during an uptrend.
Volatility (Volatility · VIX)Story
How much a stock price swings up and down — the larger it is, the greater the uncertainty and fear. The volatility gauge for the whole market is the VIX (the "fear index").
Dead Cat Bounce
When a sharply falling stock price bounces briefly and then falls again — a phrase for a temporary jump that isn't a real recovery.
Take Profit · Stop Loss
Selling to lock in a gain is taking profit; selling to limit a loss is stopping out — both are rules that decide "when to sell" in advance to keep emotion out of trading.
Averaging Down
Buying more of a stock after it has fallen to lower your average purchase price — helpful if it rebounds, but it enlarges losses if the decline continues.
The Tail Wagging the Dog
When a small part (the tail) drives the whole (the dog) — in the markets, it refers to derivatives or a handful of stocks moving the entire market.
Black SwanStory
An extreme event nobody predicted that shakes the market when it happens — and afterward it often gets framed as "we saw it coming."
Goldilocks
An economy that is "just right" — neither too hot nor too cold: moderate growth with stable prices, the environment most favorable to stocks.
Irrational ExuberanceStory
A state in which asset prices are swept up in groundless optimism and swell far beyond their actual value — the psychological foundation of a bubble.
Falling Knife
Hastily buying a sharply falling stock because it "got cheaper" — a warning likened to grabbing a falling blade with your bare hand and getting cut.
FOMO (Fear Of Missing Out)
The anxiety that you alone will miss the chance, leading to late chase-buying — the emotion that typically lifts the final stage of a bubble.
Gray Rhino
A large risk that is plainly visible and amply warned about, yet ignored until it finally hits — the opposite of the unpredictable black swan.
Calendar Effect (Santa Rally / January Effect)
A tendency for stock prices to rise or fall at certain times of year statistically — year-end gains (Santa Rally), January small-cap strength (January Effect), and so on. It doesn't always hold, though.
Quadruple Witching
The day when four types of derivatives, including stock index futures and options, all expire at once (once a quarter) — trading volume surges and volatility rises.
Meme Stock
A stock that becomes a hot topic on social media and online communities, drawing crowds of individual investors and surging regardless of its earnings.
Fear & Greed Index
A sentiment gauge showing on a 0–100 scale whether market participants are gripped by fear or caught up in greed — CNN's version is the well-known one.
Bull Trap / Bear Trap
Looks like it's rising then falls — a bull trap; looks like it's falling then rises — a bear trap. False signals that make a trend reversal appear to happen.
Dead Money
A stock that stays stuck for a while, neither rising nor falling — an expression for money that is tied up and only eating away at opportunity cost.
Circuit BreakerStory
A safety mechanism that briefly halts the market when prices plunge, cooling off overheating and panic — named after the electrical breaker that trips on overload.
Gap (Gap Up / Gap Down)
When the opening price starts well away from the previous close — the result of overnight earnings or news being priced in all at once.
Leading Stocks / Leadership-Driven Market (Market Leaders)Story
A phase in which a small number of leading stocks drive the advance and pull the whole market along — money concentrates in a few names while the rest are left behind.
Investing Principles
Basic principles and ways of thinking about investing for the long run, such as diversification, margin of safety, and moats
DiversificationStory
Spreading money across many holdings instead of concentrating it in one stock or asset to reduce risk — the practice behind "don't put all your eggs in one basket."
Margin of SafetyStory
Buying at a price well below the value you calculated, so that losses stay smaller even if your judgment is wrong — a core principle of value investing.
Moat (Economic Moat)Story
A durable competitive advantage that rivals cannot easily copy — like a moat around a castle, it protects the company's profits. A concept emphasized by Warren Buffett.
CompoundingStory
The snowball effect of earnings piling on top of earnings — the core principle of long-term investing, whose force grows explosively the longer the time.
Contrarian Investing (Contrarian)Story
Going against the crowd — buying when everyone is selling in fear and selling when they are buying in greed. It isn't easy, but the view is that big opportunities sit inside fear.
Momentum
An approach that rides the tendency for rising stocks to keep rising and falling stocks to keep falling — a trend-following strategy captured by "the trend is your friend."
Mean Reversion
The tendency for prices and metrics to return to their average after straying too far — what has risen excessively falls back, and what has dropped tends to recover.
Dollar-Cost Averaging (DCA)
An investing method of buying a fixed amount steadily over time instead of all at once, which smooths out the swings in your average purchase price.
Derivatives
Derivatives based on stocks and indexes, such as options and futures — used for hedging (guarding against risk) or betting on direction
Options (Call / Put)Story
Derivatives in which the right to buy (call) or sell (put) a stock at a set price is traded — used for hedging (insurance) or directional bets.
Futures
A contract agreed in advance to buy or sell at a set price on a set future date — used for directional bets or hedging on indexes, commodities, and the like.
Stock Indexes
Indexes representing the U.S. stock market as a whole (S&P 500, Nasdaq, Dow) and the ETFs that track them
S&P 500 (S&P 500 Index)
An index bundling the share prices of 500 leading large U.S. companies by market-cap weight — the most widely used yardstick representing the U.S. stock market as a whole.
NASDAQ
The index of the U.S. market (Nasdaq) where many technology and growth companies are listed — with a large weight in big tech, it represents how tech stocks are moving.
Dow Jones
The oldest index, built from the share prices of 30 leading U.S. blue-chip companies — it is price-weighted, so stocks with a high price per share carry more influence.
ETF (Exchange-Traded Fund)
A fund that holds many stocks in one basket and trades like a stock — the easiest way to buy an entire index such as the S&P 500.
Expense Ratio
What percentage of assets an ETF or fund takes each year as operating costs — an invisible fee that eats into returns.
Leveraged & Inverse ETF
An ETF designed to magnify an index's daily move by 2–3x (leveraged) or to move in the opposite direction (inverse) — a high-risk product for short-term bets.
Technical Indicators
Indicators that look at price movement, trend, and overheating on a chart rather than at financials
RSI (Relative Strength Index)
An overheated/cooled-off indicator expressed on a 0–100 scale, comparing the strength of recent up days and down days in the share price.
MACD (Moving Average Convergence Divergence)
An indicator that reads the direction and strength of a price trend from the gap between short-term and long-term moving averages.
Moving Average (SMA)
A line connecting the average of closing prices over a set period — a basic tool that smooths out a stock's trend.
Bollinger Bands
An indicator that draws bands above and below a moving average by the amount of volatility, showing whether the price is higher or lower than usual.
BetaStory
A number showing, on average, how many percent this stock moves when the market moves 1% — it measures how much it moves together with the market, not the size of the risk.
Golden Cross / Death Cross
A chart signal in which a short-term moving average crossing above a long-term one is read as a golden cross (a sign of a turn upward), and crossing below it as a death cross (a sign of a turn downward).
Support and ResistanceStory
A price zone where the stock tends not to fall through is support, and one where it tends not to rise past is resistance — zones formed where many people's memories and orders gather.
Trading VolumeStory
The number of shares bought and sold over a given period — a measure of how much actual trading took part in a price move.
Candlestick Chart (Up Candle / Down Candle)Story
A chart that shows a day's (or a set period's) open, close, high, and low as a single candle shape — up candle when it rises, down candle when it falls.
Trendline
A line drawn connecting a stock's highs or lows — a tool for seeing at a glance whether the flow is heading up, down, or sideways.
TPO / Market Profile (Time Price Opportunity)Story
A short-term trading method that stacks letters to show how long trading lingered at each price level during the day, revealing where price spent the most time.
POC (Point of Control)
The price where trading lingered the longest in the Market Profile — treated as the center-of-gravity price where the most trading gathered that day.
Value Area
The price range in a Market Profile where about 70% of total trading gathered — seen as the price zone the market accepted as fair that day.
How each metric is calculated in Stocklore (precise formulas, thresholds, sources) is on the Methodology page. The glossary covers plain-language explanations for beginners; methodology covers the exact formulas.
These explanations are informational and for reference only, and do not recommend buying or selling any particular stock. Investment decisions and responsibility are your own.