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What’s New in Stock Investor Pro 4.0?

New Functionalities

- Automatic Updates

This feature, when enabled, will check for new data updates every time you open the program (provided you have an active Internet connection). The Stock Investor Updater stores your AAII.com login information; confirms your credentials; compares the data date of the installed data to that of the latest data update available; and, if directed by the user, will download and automatically install the data before opening the program. For more detailed information on the Automatic Updates, see the Stock Investor Pro 4.0 Getting Started Guide.

- Crosstab Report

The new Crosstab Report allows you to select a number of pre-defined and custom screens and then see which stocks pass a specified number of those screens. For example, with the Multiscreen Selector in Stock Investor Pro, you select 10 different stock screens. Then you create a Crosstab Report showing the companies that pass at least five of the selected screens. Click here for a more detailed description of the Crosstab Report.

New Data Fields

We have added a number of new data fields to Stock Investor Pro 4.0. We have listed the new fields below, and they are defined at the very end of this document

- Buyback Yield
- Buyback Yield-1 year ago
- Buyback Yield-Average 3 years, 5 years, 7 years
- Buyback Yield Y1-Y7
- Common Dividends Paid 12m, Y1-Y7
- Common Dividends Paid Q1-Q8
- Depreciation and Amortization 12m, Y1-Y7
- Depreciation and Amortization Q1-Q8
- Dividend-Ex Date
- Dividend-Next Quarter
- Dividend-Pmt Date
- Earnings before interest and taxes (EBIT) Q1-Q8
- Earnings before interest and taxes (EBIT) 12m, Y1-Y7
- EBITDA 12m, Y1-Y7
- EBITDA Q1-Q8
- Enterprise Value Q1-Q8
- Enterprise Value Y1-Y7
- Enterprise Value/EBITDA
- Enterprise Value/EBITDA-1 year ago
- Enterprise Value/EBITDA-Average 3 years, 5 years, 7 years
- Enterprise Value/EBITDA-Y1-Y7
- EPS Est Q0-Exp Rep Date
- EPS Est Q1-Exp Rep Date
- Market Cap (Historical) Q1-Q8, Y1-Y7
- Minority Interest Q1-Q8
- Minority Interest Y1-Y7
- Retained Earnings Q1-Q8
- Retained Earnings Y1-Y7
- Shareholder Yield
- Shareholder Yield-1 year ago
- Shareholder Yield-Average 3 years, 5 years, 7 years
- Shareholder Yield-Y1-Y7
- Working Capital Q1-Q8
- Working Capital Y1-Y7
- Z-Score Q1-Q8, Y1-Y7

Enhanced Data

We have also enhanced some of the data we had previously provided in Stock Investor Pro.

- DRIP Data

Dividend reinvestment plan, or DRIP, data is now being provided by The Moneypaper, Inc. (www.directinvesting.com). When available, DRIP data for a company is found on the DRPs sub-tab of the Overview tab in the Stock Notebook.

- Optionable Tag

We are now using the Chicago Board Options Exchange (CBOE) listing of optionable stocks to populate the Optionable field in Stock Investor Pro.

- S&P Index Constituents

We are now using Standard & Poor’s listings to tag the constituents of the S&P 400, 500 and 600 indexes.

Buyback Yield
Data Table Name: BBY
Data Category: Multiples
Field Type: Percentage (-999.9 to 99.9)
Percent Rank: No
Industry/Sector Median: No

The Buyback Yield for the last fiscal quarter. A stock’s buyback yield is determined by comparing the average shares outstanding of a fiscal period with the average shares outstanding of another fiscal period. In this case, we are comparing the average shares outstanding for the latest fiscal quarter (Q1) to the average shares outstanding in the same fiscal quarter a year ago (Q5). If a stock has 90 million average shares outstanding in Q1 and had 100 million average shares outstanding in Q5, the buyback yield would be 10%. Conversely, if a stock has 100 million average shares outstanding in Q1 and had 90 million average shares outstanding in Q5, it would have a buyback yield of -11%. Note that the signs are reversed, so that a positive buyback yield indicates the average number of shares outstanding declining while a negative number indicates the average number of shares outstanding is increasing.

Typically a company’s shares outstanding declines because it is buying back its shares, although this can also be accomplished through a reverse stock split. The theory is that if a company is buying back its shares, management must feel that the shares are undervalued, so it is taking advantage of the opportunity to purchase their shares at a discount. It is also another way by which a company can support the share price for shareholders. Therefore, it can be seen as a “payment” made by the company to shareholders in lieu of a cash dividend. According to academic studies, stocks with high buyback yields should provide better performance than those with low buyback yields.

Buyback Yield-1 year ago
Data Table Name: BBY_1T
Data Category: Multiples
Field Type: Percentage (-999.9 to 99.9)
Percent Rank: No
Industry/Sector Median: No

The Buyback Yield one year ago. A stock’s buyback yield is determined by comparing the average shares outstanding of a fiscal period with the average shares outstanding of another fiscal period. In this case, we are comparing the average shares outstanding for the fiscal quarter one year ago (Q5) to the average shares outstanding in the same fiscal quarter a prior (Q9). If a stock has 90 million average shares outstanding in Q5 and had 100 million average shares outstanding in Q9, the buyback yield would be 10%. Conversely, if a stock has 100 million average shares outstanding in Q5 and had 90 million average shares outstanding in Q9, it would have a buyback yield of -11%. Note that the signs are reversed, so that a positive buyback yield indicates the average number of shares outstanding declining while a negative number indicates the average number of shares outstanding is increasing.

Typically a company’s shares outstanding declines because it is buying back its shares, although this can also be accomplished through a reverse stock split. The theory is that if a company is buying back its shares, management must feel that the shares are undervalued, so it is taking advantage of the opportunity to purchase their shares at a discount. It is also another way by which a company can support the share price for shareholders. Therefore, it can be seen as a “payment” made by the company to shareholders in lieu of a cash dividend. According to academic studies, stocks with high buyback yields should provide better performance than those with low buyback yields.

Buyback Yield-Average 3 years, 5 years, 7 years
Data Table Name: BBY_A3Y, A5Y, A7Y
Data Category: Multiples
Field Type: Percentage (-999.9 to 99.9)
Percent Rank: No
Industry/Sector Median: No

The average Buyback Yield over the last three, five and seven years. A stock’s buyback yield is determined by comparing the average shares outstanding of a fiscal period with the average shares outstanding of another fiscal period. The Buyback Yield for the latest fiscal year (Y1) compares the average shares outstanding for the latest fiscal year (Y1) to the average shares outstanding one year ago (Y2). If a stock has 90 million average shares outstanding in Y1 and had 100 million average shares outstanding in Y2, the buyback yield would be 10%. Conversely, if a stock has 100 million average shares outstanding in Y1 and had 90 million average shares outstanding in Y2, it would have a buyback yield of -11%. We then take the simple averages of a company’s buyback yields over the last three, five and seven years. Note that the signs are reversed, so that a positive buyback yield indicates the average number of shares outstanding declining while a negative number indicates the average number of shares outstanding is increasing.

Typically a company’s shares outstanding declines because it is buying back its shares, although this can also be accomplished through a reverse stock split. The theory is that if a company is buying back its shares, management must feel that the shares are undervalued, so it is taking advantage of the opportunity to purchase their shares at a discount. It is also another way by which a company can support the share price for shareholders. Therefore, it can be seen as a “payment” made by the company to shareholders in lieu of a cash dividend. According to academic studies, stocks with high buyback yields should provide better performance than those with low buyback yields.

Buyback Yield Y1-Y7
Data Table Name: BBY_Y1, Y2, Y3, Y4, Y5, Y6, Y7
Data Category: Multiples
Field Type: Percentage (-999.9 to 99.9)
Percent Rank: No
Industry/Sector Median: No

The Buyback Yield over each of the last seven fiscal years. A stock’s buyback yield is determined by comparing the average shares outstanding of a fiscal period with the average shares outstanding of another fiscal period. The Buyback Yield for the latest fiscal year (Y1) compares the average shares outstanding for the latest fiscal year (Y1) to the average shares outstanding one year ago (Y2). If a stock has 90 million average shares outstanding in Y1 and had 100 million average shares outstanding in Y2, the buyback yield would be 10%. Conversely, if a stock has 100 million average shares outstanding in Y1 and had 90 million average shares outstanding in Y2, it would have a buyback yield of -11%. We then take the simple averages of a company’s buyback yields over the last three, five and seven years. Note that the signs are reversed, so that a positive buyback yield indicates the average number of shares outstanding declining while a negative number indicates the average number of shares outstanding is increasing.

Typically a company’s shares outstanding declines because it is buying back its shares, although this can also be accomplished through a reverse stock split. The theory is that if a company is buying back its shares, management must feel that the shares are undervalued, so it is taking advantage of the opportunity to purchase their shares at a discount. It is also another way by which a company can support the share price for shareholders. Therefore, it can be seen as a “payment” made by the company to shareholders in lieu of a cash dividend. According to academic studies, stocks with high buyback yields should provide better performance than those with low buyback yields.

Common Dividends Paid 12m, Y1-Y7
Data Table Name: DIVPAID_Y1, Y2, Y3, Y4, Y5, Y6, Y7
Data Category: Cash Flow – Annual
Field Type: Dollars in millions (-99999.9 to 0.0)
Percent Rank: No
Industry/Sector Median: No

The total dollar amount of dividends paid to common shareholders, as reported on a company’s statement of cash flows, for the last four fiscal quarters (trailing 12 months) and for each of the last seven fiscal years. This amount may be different from the dividends declared in the same period. Although the distribution to shareholders as stock dividends or bonus is a non-cash activity, companies may report the stock dividend as a cash distribution and an increase in common stock. In these cases, the data reflects what was reported by the company. Common Dividends Paid includes distribution to shareholders, unit holders, and parent company, as well as ordinary dividends, special dividends, and memorial dividends to common stock.

Common Dividends Paid Q1-Q8
Data Table Name: DIVPAID_Q1, Q2, Q3, Q4, Q5, Q6, Q7, Q8
Data Category: Cash Flow – Quarterly
Field Type: Dollars in millions (-99999.9 to 0.0)
Percent Rank: No
Industry/Sector Median: No

The total dollar amount of dividends paid to common shareholders, as reported on a company’s statement of cash flows, for each of the last eight fiscal quarters. This amount may be different from the dividends declared in the same period. Although the distribution to shareholders as stock dividends or bonus is a non-cash activity, companies may report the stock dividend as a cash distribution and an increase in common stock. In these cases, the data reflects what was reported by the company. Common Dividends Paid includes distribution to shareholders, unit holders, and parent company, as well as ordinary dividends, special dividends, and memorial dividends to common stock.

Depreciation and Amortization 12m, Y1-Y7
Data Table Name: DEP_CF_Y1, Y2, Y3, Y4, Y5, Y6, Y7
Data Category: Cash Flow – Annual
Field Type: Dollars in millions (-99999.9 to 0.0)
Percent Rank: No
Industry/Sector Median: No

Depreciation and amortization, as reported on a company’s statement of cash flows, for the last four fiscal quarters (trailing 12 months) and for each of the last seven fiscal years. This value can include depreciation, amortization of intangibles and acquisition costs, and depletion. Depreciation represents the amount of expense charged against earnings by a company to write off the cost of a plant or machine over its useful life, giving consideration to wear and tear, obsolescence, and salvage value. Depletion represents a non-cash expense: depletion of depletable fixed assets such as oil reserves, forests or mineral extraction rights. Amortization of intangibles represents a non-cash expense incurred due to the amortization of intangible fixed assets, including software development costs, acquired technology, and impairment or write-off of intangible assets. Amortization of acquisition costs represents a non-cash expense from the amortization of goodwill or business acquisition costs capitalized.

Depreciation and Amortization Q1-Q8
Data Table Name: DEP_CF_Q1, Q2, Q3, Q4, Q5, Q6, Q7, Q8
Data Category: Cash Flow – Quarterly
Field Type: Dollars in millions (-99999.9 to 0.0)
Percent Rank: No
Industry/Sector Median: No

Depreciation and amortization, as reported on a company’s statement of cash flows, for each of the last eight fiscal quarters. This value can include depreciation, amortization of intangibles and acquisition costs, and depletion. Depreciation represents the amount of expense charged against earnings by a company to write off the cost of a plant or machine over its useful life, giving consideration to wear and tear, obsolescence, and salvage value. Depletion represents a non-cash expense: depletion of depletable fixed assets such as oil reserves, forests or mineral extraction rights. Amortization of intangibles represents a non-cash expense incurred due to the amortization of intangible fixed assets, including software development costs, acquired technology, and impairment or write-off of intangible assets. Amortization of acquisition costs represents a non-cash expense from the amortization of goodwill or business acquisition costs capitalized.

Dividend-Ex Date
Data Table Name: DIVNQXDT
Data Category: Income Statement – Quarterly
Field Type: Date (MM/DD/YYYY)
Percent Rank: No
Industry/Sector Median: No

The dividend ex-date for the most recently declared dividend of a company. The ex-dividend date, also known as the reinvestment date, is an investment term involving the timing of payment of dividends on stocks of corporations, income trusts, and other financial holdings. In the United States, the IRS defines the ex-dividend date as "the first date following the declaration of a dividend on which the buyer of a stock is not entitled to receive the next dividend payment." This field may be empty for dividend-paying companies if the next dividend payment has not been declared. Alternatively, the date provide may have passed if the next dividend payment has not been declared.

The Record Date, or Date of Record, determines the ex-dividend date, before which an investor must own the stock in order to receive the dividend. For the investor to receive the upcoming dividend the investor must purchase the stock prior to the ex-dividend date. The ex-dividend date is two business days prior to the record date. To be a stockholder on the record date an investor must purchase the stock before the ex-dividend date. The latest date he can buy the stock to be a stockholder on record and be entitled to the dividend would be one day prior to the ex-dividend date to allow for the three stock trading day settlement of the stock purchase. If the investor purchases the stock the day before the ex-dividend date, the investor would be a stockholder on the record date and would be entitled to receive the dividend payment.

Dividend-Next Quarter
Data Table Name: DIVNQ
Data Category: Income Statement – Quarterly
Field Type: Dollars per share (0.0 to 999.99) Percent Rank: No
Industry/Sector Median: No

Dividend-Next Quarter is the per-share amount of the next quarterly dividend declared by a company to be paid to common shareholders.

Dividend-Pmt Date
Data Table Name: DIVNQPDT
Data Category: Income Statement – Quarterly
Field Type: Date (MM/DD/YYYY)
Percent Rank: No
Industry/Sector Median: No

Dividend-Pmt Date is the date that the next quarterly dividend will be paid to common shareholders. This is the day when the dividend checks are actually mailed to shareholders of a company or credited to brokerage accounts. This field may be empty for dividend-paying companies if the next dividend payment has not been declared. Alternatively, the date provide may have passed if the next dividend payment has not been declared.

Earnings before interest and taxes (EBIT) Q1-Q8
Data Table Name: EBIT_Q1, Q2, Q3, Q4, Q5, Q6, Q7, Q8
Data Category: Income Statement – Quarterly
Field Type: Dollars in millions (-99999.9 to 99999.9)
Percent Rank: No
Industry/Sector Median: No

Earnings before interest and taxes (EBIT) for each of the last eight fiscal quarters. EBIT is a measure of a firm’s profit that excludes non-operating interest and income tax expenses. In Stock Investor, EBIT is calculated as follows:

EBIT = Sales revenue – Operating expenses + Non-operating income (Non-operating expense)

Earnings before interest and taxes (EBIT) 12m, Y1-Y7
Data Table Name: EBIT_12m, Y1, Y2, Y3, Y4, Y5, Y6, Y7
Data Category: Income Statement – Annual
Field Type: Dollars in millions (-99999.9 to 99999.9)
Percent Rank: No
Industry/Sector Median: No

Earnings before interest and taxes (EBIT) for the trailing 12 months and for each of the last seven fiscal years. EBIT is a measure of a firm’s profit that excludes non-operating interest and income tax expenses. In Stock Investor, EBIT is calculated as follows:

EBIT = Sales revenue – Operating expenses + Non-operating income (Non-operating expense)

EBITDA 12m, Y1-Y7
Data Table Name: EBITDA_12m, Y1, Y2, Y3, Y4, Y5, Y6, Y7
Data Category: Income Statement – Annual
Field Type: Dollars in millions (-99999.9 to 99999.9)
Percent Rank: No
Industry/Sector Median: No

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the trailing 12 months and for each of the last seven fiscal years. EBITDA is essentially net income with interest, taxes, depreciation, and amortization added back to it, and can be used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions. This is a non-GAAP measure that allows a greater amount of discretion as to what is (and is not) included in the calculation. This also means that companies often change the items included in their EBITDA calculation from one reporting period to the next. A common misconception is that EBITDA represents cash earnings. EBITDA is a good metric to evaluate profitability, but not cash flow. EBITDA also leaves out the cash required to fund working capital (current assets less current liabilities) and the replacement of old equipment, which can be significant. Consequently, EBITDA is often used as an accounting gimmick to dress up a company's earnings. When using this metric, it's key that investors also focus on other performance measures to make sure the company is not trying to hide something with EBITDA.

In Stock Investor, EBITDA is calculated as follows:

EBITDA = EBIT + Depreciation and Amortization

In order to have a valid (non-null) EBITDA value, a company must report depreciation and amortization on its income statement.

EBITDA Q1-Q8
Data Table Name: EBITDA_Q1, Q2, Q3, Q4, Q5, Q6, Q7, Q8
Data Category: Income Statement – Quarterly
Field Type: Dollars in millions (-99999.9 to 99999.9)
Percent Rank: No
Industry/Sector Median: No

Earnings before interest, taxes, depreciation and amortization (EBITDA) for each of the last eight fiscal quarters. EBITDA is essentially net income with interest, taxes, depreciation, and amortization added back to it, and can be used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions. This is a non-GAAP measure that allows a greater amount of discretion as to what is (and is not) included in the calculation. This also means that companies often change the items included in their EBITDA calculation from one reporting period to the next. A common misconception is that EBITDA represents cash earnings. EBITDA is a good metric to evaluate profitability, but not cash flow. EBITDA also leaves out the cash required to fund working capital (current assets less current liabilities) and the replacement of old equipment, which can be significant. Consequently, EBITDA is often used as an accounting gimmick to dress up a company's earnings. When using this metric, it's key that investors also focus on other performance measures to make sure the company is not trying to hide something with EBITDA.

In Stock Investor, EBITDA is calculated as follows:

EBITDA = EBIT + Depreciation and Amortization

In order to have a valid (non-null) EBITDA value, a company must report depreciation and amortization on its income statement.

Enterprise Value Q1-Q8
Data Table Name: ENTVAL_Q1, Q2, Q3, Q4, Q5, Q6, Q7, Q8
Data Category: Balance Sheet—Quarterly
Field Type: Dollars in millions (-999990.9 to 999999.9)
Percent Rank: No
Industry/Sector Median: No

Enterprise value for each of the last eight fiscal quarters. Enterprise value (EV) is a measure of a company’s value, often used as an alternative to market capitalization. In Stock Investor, enterprise value is calculated as:

Enterprise Value = Market cap (historical) + short-term debt + long-term debt + minority interest + preferred equity – cash

Enterprise is sometimes referred to a company’s theoretical takeover price. In the event of a buyout, an acquirer would have to take on the company's debt, but would pocket its cash. EV differs significantly from simple market capitalization in several ways, and many consider it to be a more accurate representation of a firm's value. The value of a firm's debt, for example, would need to be paid by the buyer when taking over a company, thus EV provides a much more accurate takeover valuation because it includes debt in its value calculation. Enterprise value is the total value of a company. Whereas multiples that use the stock price look only at the equity side of a stock, enterprise value includes a company’s debt, cash and minority interests.

Enterprise Value Y1-Y7
Data Table Name: ENTVAL_Y1, Y2, Y3, Y4, Y5, Y6, Y7
Data Category: Balance Sheet—Annual
Field Type: Dollars in millions (-999990.9 to 999999.9)
Percent Rank: No
Industry/Sector Median: No

Enterprise value for each of the last seven fiscal years. Enterprise value (EV) is a measure of a company’s value, often used as an alternative to market capitalization. In Stock Investor, enterprise value is calculated as:

Enterprise Value = Market cap (historical) + short-term debt + long-term debt + minority interest + preferred equity – cash

Enterprise is sometimes referred to a company’s theoretical takeover price. In the event of a buyout, an acquirer would have to take on the company's debt, but would pocket its cash. EV differs significantly from simple market capitalization in several ways, and many consider it to be a more accurate representation of a firm's value. The value of a firm's debt, for example, would need to be paid by the buyer when taking over a company, thus EV provides a much more accurate takeover valuation because it includes debt in its value calculation. Enterprise value is the total value of a company. Whereas multiples that use the stock price look only at the equity side of a stock, enterprise value includes a company’s debt, cash and minority interests.

Enterprise Value/EBITDA
Data Table Name: EVEDA_12M
Data Category: Multiples
Field Type: Decimal (-99999.9 to 99999.9)
Percent Rank: No
Industry/Sector Median: No

The current ratio of Enterprise Value to EBITDA. Also referred to as the Enterprise Multiple. In Stock Investor, the current Enterprise Multiple is calculated as follows:

Enterprise Value/EBIDA = Enterprise Value Q1 ÷ EBITDA 12m

The enterprise multiple is a ratio used to determine the value of a company. The enterprise multiple looks at a firm as a potential acquirer would, because it takes debt into account—an item which other multiples like the P/E ratio do not include. Generally speaking, a low ratio indicates that a company might be undervalued, whereas a high value may indicate an overvalued company. The enterprise multiple is useful because it ignores the distorting effects of individual countries' taxation policies.

Keep in mind that enterprise multiples can vary depending on the industry. Therefore, it's important to compare the multiple to other companies or to the industry in general. Expect higher enterprise multiples in high growth industries (like biotech) and lower multiples in industries with slow growth (like railways).

Enterprise Value/EBITDA-1 year ago
Data Table Name: EVEDA_1T
Data Category: Multiples Field Type: Decimal (-99999.9 to 99999.9)
Percent Rank: No
Industry/Sector Median: No

The ratio of Enterprise Value to EBITDA from one year ago. Also referred to as the Enterprise Multiple. In Stock Investor, the Enterprise Multiple is calculated as follows:

Enterprise Value/EBIDA = Enterprise Value ÷ EBITDA

The enterprise multiple is a ratio used to determine the value of a company. The enterprise multiple looks at a firm as a potential acquirer would, because it takes debt into account—an item which other multiples like the P/E ratio do not include. Generally speaking, a low ratio indicates that a company might be undervalued, whereas a high value may indicate an overvalued company. The enterprise multiple is useful because it ignores the distorting effects of individual countries' taxation policies.

Keep in mind that enterprise multiples can vary depending on the industry. Therefore, it's important to compare the multiple to other companies or to the industry in general. Expect higher enterprise multiples in high growth industries (like biotech) and lower multiples in industries with slow growth (like railways).

Enterprise Value/EBITDA-Average 3 years, 5 years, 7 years
Data Table Name: EVEDA_A3Y, A5Y, A7Y
Data Category: Multiples
Field Type: Decimal (-99999.9 to 99999.9)
Percent Rank: No
Industry/Sector Median: No

The average ratio of Enterprise Value to EBITDA for the last three, five and seven years. Also referred to as the Enterprise Multiple. In Stock Investor, the Enterprise Multiple is calculated as follows:

Enterprise Value/EBIDA = Enterprise Value ÷ EBITDA

We then take a simple average for the last three, five and seven year periods.

The enterprise multiple is a ratio used to determine the value of a company. The enterprise multiple looks at a firm as a potential acquirer would, because it takes debt into account—an item which other multiples like the P/E ratio do not include. Generally speaking, a low ratio indicates that a company might be undervalued, whereas a high value may indicate an overvalued company. The enterprise multiple is useful because it ignores the distorting effects of individual countries' taxation policies.

Keep in mind that enterprise multiples can vary depending on the industry. Therefore, it's important to compare the multiple to other companies or to the industry in general. Expect higher enterprise multiples in high growth industries (like biotech) and lower multiples in industries with slow growth (like railways).

Enterprise Value/EBITDA-Y1-Y7
Data Table Name: EVEDA_Y1, Y2, Y3, Y4, Y5, Y6, Y7
Data Category: Multiples
Field Type: Decimal (-99999.9 to 99999.9) Percent Rank: No
Industry/Sector Median: No

The ratio of Enterprise Value to EBITDA for each of the last seven fiscal years. Also referred to as the Enterprise Multiple. In Stock Investor, the Enterprise Multiple is calculated as follows:

Enterprise Value/EBIDA = Enterprise Value ÷ EBITDA

The enterprise multiple is a ratio used to determine the value of a company. The enterprise multiple looks at a firm as a potential acquirer would, because it takes debt into account—an item which other multiples like the P/E ratio do not include. Generally speaking, a low ratio indicates that a company might be undervalued, whereas a high value may indicate an overvalued company. The enterprise multiple is useful because it ignores the distorting effects of individual countries' taxation policies.

Keep in mind that enterprise multiples can vary depending on the industry. Therefore, it's important to compare the multiple to other companies or to the industry in general. Expect higher enterprise multiples in high growth industries (like biotech) and lower multiples in industries with slow growth (like railways).

EPS Est Q0-Exp Rep Date
Data Table Name: REPDT_Q0
Data Category: Earnings Estimates
Field Type: Date (MM/DD/YYYY)
Percent Rank: No
Industry/Sector Median: No

The day on which a company is expected to announce its quarterly earnings for the current fiscal quarter. This day may or may not be confirmed by the company.

EPS Est Q1-Exp Rep Date
Data Table Name: REPDT_Q1
Data Category: Earnings Estimates
Field Type: Date (MM/DD/YYYY)
Percent Rank: No
Industry/Sector Median: No

The day on which a company is expected to announce its quarterly earnings for the next fiscal quarter. This day may or may not be confirmed by the company.

Market Cap Hist. Q1-Q8, Y1-Y7
Data Table Name: MKTCAP_ Q1, Q2, Q3, Q4, Q5, Q6, Q7, Q7, Y1, Y2, Y3, Y4, Y5, Y6, Y7
Data Category: Price and Share Statistics
Field Type: Dollars in millions (0.0 to 999999.9)
Percent Rank: No
Industry/Sector Median: No

Market capitalization for each of the last eight fiscal quarters and last seven fiscal years. Computed by multiplying the average monthly high and low prices during the fiscal period by the average number of diluted shares outstanding for the same period.

Minority Interest Q1-Q8
Data Table Name: MINOR_Q1, Q2, Q3, Q4, Q5, Q6, Q7, Q8
Data Category: Balance Sheet–Quarterly
Field Type: Dollars in millions (0.0 to 999999.99)
Percent Rank: No
Industry/Sector Median: No

Minority interest (also known as non-controlling interest) for each of the last eight fiscal quarters. Minority interest represents accumulated interest for minority shareholders in subsidiaries that are less than 100% owned by the reporting company. The net worth of a subsidiary is assumed to be proportionally owned by the reporting parent company and other minority shareholders according to their respective ownership percentage. Minority interest belongs to other investors and is reported on the consolidated balance sheet of the owning (parent) company to reflect the claim on assets belonging to other, non-controlling shareholders. Also, minority interest is reported on the consolidated income statement as a share of profit belonging to minority shareholders. Under International Financial Reporting Standards (IFRS), the minority interest (non-controlling interest) is reported in the Equity section of the consolidated balance sheet. Under US GAAP, minority interest can be reported in the liabilities section, the equity section, or the mezzanine section of the balance sheet. The Mezzanine section is located between liabilities and equity. FASB FAS 160 and FAS 141r significantly alter the way a parent company accounts for NCI in a subsidiary. It is no longer acceptable to report minority interest in the Mezzanine section of the balance sheet. In Stock Investor Pro, minority interest is reported in the Equity section of the balance sheet.

Minority Interest Y1-Y7
Data Table Name: MINOR_Y1, Y2, Y3, Y4, Y5, Y6, Y7
Data Category: Balance Sheet–Annual
Field Type: Dollars in millions (0.0 to 999999.99)
Percent Rank: No
Industry/Sector Median: No

Minority interest (also known as non-controlling interest) for each of the last seven fiscal years. Minority interest represents accumulated interest for minority shareholders in subsidiaries that are less than 100% owned by the reporting company. The net worth of a subsidiary is assumed to be proportionally owned by the reporting parent company and other minority shareholders according to their respective ownership percentage. Minority interest belongs to other investors and is reported on the consolidated balance sheet of the owning (parent) company to reflect the claim on assets belonging to other, non-controlling shareholders. Also, minority interest is reported on the consolidated income statement as a share of profit belonging to minority shareholders. Under International Financial Reporting Standards (IFRS), the minority interest (non-controlling interest) is reported in the Equity section of the consolidated balance sheet. Under US GAAP, minority interest can be reported in the liabilities section, the equity section, or the mezzanine section of the balance sheet. The Mezzanine section is located between liabilities and equity. FASB FAS 160 and FAS 141r significantly alter the way a parent company accounts for NCI in a subsidiary. It is no longer acceptable to report minority interest in the Mezzanine section of the balance sheet. In Stock Investor Pro, minority interest is reported in the Equity section of the balance sheet.

Retained Earnings Q1-Q8
Data Table Name: RETEARN_Q1, Q2, Q3, Q4, Q5, Q6, Q7, Q8
Data Category: Balance Sheet – Quarterly
Field Type: Dollars in millions (-99999.9 to 0.0)
Percent Rank: No
Industry/Sector Median: No

The Retained Earnings (Accumulated Deficit) reported on a company’s balance sheet for each of the last eight fiscal quarters. This represents the residual earnings from operations not distributed to shareholders. It may represent accumulated deficit when a company incurs losses over time. Retained earnings are a subset of total shareholders’ equity.

Retained Earnings Y1-Y7
Data Table Name: RETEARN_Y1, Y2, Y3, Y4, Y5, Y6, Y7
Data Category: Balance Sheet – Annual
Field Type: Dollars in millions (-99999.9 to 0.0)
Percent Rank: No
Industry/Sector Median: No

The Retained Earnings (Accumulated Deficit) reported on a company’s balance sheet for each of the last seven fiscal years. This represents the residual earnings from operations not distributed to shareholders. It may represent accumulated deficit when a company incurs losses over time. Retained earnings are a subset of total shareholders’ equity.

Shareholder Yield
Data Table Name: SHY
Data Category: Multiples
Field Type: Percentage (-999.9 to 99.9)
Percent Rank: No
Industry/Sector Median: No

The Shareholder Yield for the last fiscal quarter. A stock’s shareholder yield is the sum of its buyback yield and dividend yield and shows what percentage of total cash the company is paying out to shareholders, either in the form of a cash dividend or as expended cash to repurchase its shares in the open market. Thus, if a company is paying a 5% dividend yield and has a buyback yield of 10%, its shareholder yield would be 15%. The theory is that stocks with higher shareholder yields might be more attractive that those with lower ones.

Shareholder Yield-1 year ago
Data Table Name: SHY_1T
Data Category: Multiples
Field Type: Percentage (-999.9 to 99.9)
Percent Rank: No
Industry/Sector Median: No

The Shareholder Yield from one year ago. A stock’s shareholder yield is the sum of its buyback yield and dividend yield and shows what percentage of total cash the company is paying out to shareholders, either in the form of a cash dividend or as expended cash to repurchase its shares in the open market. Thus, if a company is paying a 5% dividend yield and has a buyback yield of 10%, its shareholder yield would be 15%. The theory is that stocks with higher shareholder yields might be more attractive that those with lower ones.

Shareholder Yield-Average 3 years, 5 years, 7 years
Data Table Name: SHY_A3Y, A5Y, A7Y
Data Category: Multiples
Field Type: Percentage (-999.9 to 99.9)
Percent Rank: No
Industry/Sector Median: No

The average Shareholder Yield for the last three-, five- and seven-year periods. A stock’s shareholder yield is the sum of its buyback yield and dividend yield and shows what percentage of total cash the company is paying out to shareholders, either in the form of a cash dividend or as expended cash to repurchase its shares in the open market. Thus, if a company is paying a 5% dividend yield and has a buyback yield of 10%, its shareholder yield would be 15%. The theory is that stocks with higher shareholder yields might be more attractive that those with lower ones.

Shareholder Yield-Y1-Y7
Data Table Name: SHY_Y1, Y2, Y3, Y4, Y5, Y6, Y7
Data Category: Multiples
Field Type: Percentage (-999.9 to 99.9)
Percent Rank: No
Industry/Sector Median: No

The Shareholder Yield for each of the last seven fiscal years. A stock’s shareholder yield is the sum of its buyback yield and dividend yield and shows what percentage of total cash the company is paying out to shareholders, either in the form of a cash dividend or as expended cash to repurchase its shares in the open market. Thus, if a company is paying a 5% dividend yield and has a buyback yield of 10%, its shareholder yield would be 15%. The theory is that stocks with higher shareholder yields might be more attractive that those with lower ones.

Working Capital Q1-Q8
Data Table Name: WORK_Q1, Q2, Q3, Q4, Q5, Q6, Q7, Q8
Data Category: Balance Sheet – Quarterly
Field Type: Dollars in millions (-99999.9 to 99999.9)
Percent Rank: No
Industry/Sector Median: No

The working capital of a company for each of the last eight fiscal quarters. It is the difference between a company’s current assets and its current liabilities. Working capital is a measure of both a company’s efficiency and its short-term financial health. Positive working capital means that the company is able to pay off its short-term liabilities. Negative working capital means that a company currently is unable to meet its short-term liabilities with its current assets (cash, accounts receivable and inventory). A declining working capital ratio over a longer time period could be a red flag that warrants further analysis. Working capital also gives investors an idea of the company's underlying operational efficiency. Money that is tied up in inventory or money that customers still owe to the company cannot be used to pay off any of the company's obligations. So, if a company is not operating in the most efficient manner (slow collection), it will show up as an increase in the working capital. This can be seen by comparing the working capital from one period to another; slow collection may signal an underlying problem in the company's operations.

Note that some firms do no report current assets and/or liabilities on their financial statements. In these cases, it is not possible to calculate their working capital.

Working Capital Y1-Y7
Data Table Name: WORK_Y1, Y2, Y3, Y4, Y5, Y6, Y7
Data Category: Balance Sheet – Annual
Field Type: Dollars in millions (-99999.9 to 99999.9)
Percent Rank: No
Industry/Sector Median: No

The working capital of a company for each of the last seven fiscal years. It is the difference between a company’s current assets and its current liabilities. Working capital is a measure of both a company’s efficiency and its short-term financial health. Positive working capital means that the company is able to pay off its short-term liabilities. Negative working capital means that a company currently is unable to meet its short-term liabilities with its current assets (cash, accounts receivable and inventory). A declining working capital ratio over a longer time period could be a red flag that warrants further analysis. Working capital also gives investors an idea of the company's underlying operational efficiency. Money that is tied up in inventory or money that customers still owe to the company cannot be used to pay off any of the company's obligations. So, if a company is not operating in the most efficient manner (slow collection), it will show up as an increase in the working capital. This can be seen by comparing the working capital from one period to another; slow collection may signal an underlying problem in the company's operations.

Note that some firms do no report current assets and/or liabilities on their financial statements. In these cases, it is not possible to calculate their working capital.

Z-Score Q1-Q8, Y1-Y7
Data Table Name: ZSCORE_Q1, Q2, Q3, Q4, Q5, Q6, Q7, Q7, Y1, Y2, Y3, Y4, Y5, Y6, Y7
Data Category: Ratios
Field Type: Decimal (-999.99 to 999.99)
Percent Rank: No
Industry/Sector Median: No

NYU professor Edward Altman developed the Z-Score in the late 1960s to explicitly address the likelihood that a company would go bankrupt. The Altman Z-Score actually consists of five performance ratios that are combined into a single score. These five ratios are weighted using the following formula:

Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E
Where:
A = working capital ÷ total assets
B = retained earnings ÷ total assets
C = earnings before interest & taxes ÷ total assets
D = market value of equity ÷ total liabilities
E = sales ÷ total assets

When analyzing the Z-Score of a company, the lower the value, the higher the odds that the company is headed toward bankruptcy. Altman came up with the following rules for interpreting a firm’s Z-Score:

• Below 1.8 indicates a firm is headed for bankruptcy; • Above 3.0 indicates a firm is unlikely to enter bankruptcy; and • Between 1.8 and 3.0 is a statistical “gray area.”

Deconstructing the Z-Score:

• Working Capital to Total Assets

Working capital is a company’s current assets less its current liabilities and measures a company’s efficiency and its short-term financial health. Positive working capital means that the company is able to meet its short-term obligations. Negative working capital means that a company’s current assets cannot meet its short-term liabilities; it could have problems paying back creditors in the short term, ultimately forcing it into bankruptcy. Companies with healthy, positive working capital shouldn’t have problems paying their bills.

• Retained Earnings to Total Assets

The retained earnings of a company are the percentage of net earnings not paid out as dividends; they are “retained” to be reinvested in the firm or used to pay down debt. Retained earnings are calculated as follows:

The ratio of retained earnings to total assets helps measure the extent to which a company relies on debt, or leverage. The lower the ratio, the more a company is funding assets by borrowing instead of through retained earnings which, again, increases the risk of bankruptcy if the firm cannot meet its debt obligations.

• Earnings Before Interest & Taxes to Total Assets

This is a variation on return on assets, which is net income divided by total assets. This ratio assesses a firm’s ability to generate profits from its assets before deducting interest and taxes.

• Market Value of Equity to Total Liabilities

The ratio of market value of equity to total liabilities shows how much a company’s market value (as measured by market capitalization, or share price times shares outstanding, plus preferred equity) could decline before liabilities exceeded assets.

Unlike the other ratio components used by the Z-Score, market value isn’t based purely on fundamentals—the market capitalization of a firm is an indication of the market’s confidence in a company’s financial position. Generally speaking, the higher the market capitalization of a company, the higher the likelihood that the firm can survive going forward.

• Sales to Total Assets

The ratio of sales to total assets, more commonly referred to as asset turnover, measures the amount of sales generated by a company for every dollar’s worth of its assets.

In other words, asset turnover is an indication of how efficiently a company is as using its assets to generate sales. The higher the number the better, while low or falling asset turnover can signal a failure by the company to expand its market share.

Weaknesses of the Z-Score

Whenever you use financial ratios to analyze a company, it is important to keep in mind that no analysis technique is perfect, and the Z-Score is no exception. The biggest drawback, as is the case with all financial analysis, is that the Z-Score is reliant on the quality of the underlying financial statement data. If a company is “cooking the books,” its financial statement data is not a true representation of the strength (or lack thereof) of the company. Remember that the Z-Score is only as good as the data that goes into it (“garbage in, garbage out”).

Conclusion

The Z-Score is another tool investors can use to monitor the safety of their investments. As we saw with Borders, a steadily declining score can signal underlying problems with a company. That being said, it is still subject to shortcomings faced by all financial metrics.

At a minimum, however, a low or declining Z-Score should spur you to conduct more in-depth analysis to seek out the root cause.