The Edge Market - Features v 1 WW 1

Transcription

1 The Edge Market - Features v 1 WW 1

2 Key Features of The Edge Market Dashboard The Dashboard offers data & analytics on all listed companies on the Bursa Malaysia and Singapore Exchange. These include the Edge Markets proprietary Valuation score, Fundamental score, Volatility and Liquidity for each stock (see below for further details). In this tab you will also find 12 months price chart and snapshot of the business, key management, top shareholders as well as recent related news. Chart In this tab you can see the company s price chart, from 5 days to a maximum of 3 years. You can also compare the relative share price performance for selected companies. Further down, there is comparison table for a maximum of 6 related companies. We will show you the top 3 companies that have the largest market cap and 3 other companies with similar market cap with the company you have chosen. Ratio In this tab you will find some key ratios information such as historical P/E, P/E-togrowth (PEG), Price/Net asset value, Dividend yield (%), ROE (%), Gearing (%), Net Interest margin (%), Overhead cost ratio (%), Total capital ratio (%), Gross Impaired loans ratio (%) and Loans growth (%). Most information will be for Trailing Twelve Months (timeframe of the past 12-month). Financials In this tab, we have a summary of the company s Income Statement and Balance Sheet information for your reference. Related News In this tab, you will find news published by The Edge and Bernama. Besides that, we will provide information from other websites, which we crawled under What s buzzing. The Edge Market - Features v 1 WW 2

3 Dashboard - Features Valuation Score The score is a snapshot of the stock s attractiveness, composing of several of the most-often used valuation benchmarks that are calculated based on historical numbers. A Valuation Score of 0 means valuations are not attractive and a score of 3 means valuations are attractive. The relative weights of the score are customisable therefore you may recalculate the score according to your preference. Market Capitalisation The total dollar market value of all of a company s outstanding shares. Market capitalisation is calculated by multiplying a company s shares outstanding by the current market price of one share. Current P/E P/E is a popular valuation benchmark derived by comparing the company s current share price compare to its pershare earnings (We calculate P/E = Market Capitalisation/TTM Net profit) Fundamental Score The score is a snapshot of the company s profitability and balance sheet strength calculated based on historical numbers. The score ranges from 0-3. A score of 0 means weak fundamentals and a score of 3 means strong fundamentals. The relative weights of the score are customisable therefore you may recalculate the score according to your preference. Volatility This reflects the volatility of a company s share price relative to the market. Low volatility means the share price has been historically stable. High volatility means share price has been volatile over a predefined period of time. Liquidity This is the average number of shares transacted daily in the past 200 trading days. The Edit button for Valuation and Fundamental Scores These Edit buttons allow you to recalculate the Valuation and Fundamental Scores based on your weightage preference for each of the key ratios composing of both scores. Purposes of the Fundamental and Valuation calculators are available on the next page. Annual (TTM) Revenue Trailing Twelve Months (a.k.a. TTM) is the timeframe of the past 12 months used for reporting financial figures. Annual (TTM) Revenue is the total revenue for a company in the latest 12- month period. This is different from the company s Annual Report, where Revenue is calculated for the fiscal year period. Likelihood of Corporate Exercise An indicator of a company in a state which lends itself to corporate exercises (whether merger & acquisition, Take-over or otherwise) based on a predefined set of criteria. Likelihood of Corporate Exercise will be either High or Normal. Total Assets The sum of all Long-term Assets and Net Current Assets (Current Assets less Current Liabilities) owned by the company The Edge Market - Features v 1 WW 3

4 Purpose of the Valuation and Fundamental Calculators and How Should Client use it to Their Advantage The purpose of the Valuation and Fundamental Scores is to assist you in evaluating a stock. A Fundamental Score of 3 means a company has strong underlying fundamentals. It generally means that the stock is a good value investment in the longer-term. Valuation Score of 3 = the stock is attractively valued, in general. It suggests a good investment especially if a company has high Valuation Score and high Fundamental Score. Bear in mind that these scores are calculated using historical numbers. It does not take into account what could happen in the future. Apart from these scores, any decision to buy any stock should also take into account other factors like your own investment goal, your risk appetite. Explanation on Key Ratios P/E: PEG: Price/Net Asset Value: Dividend Yield (%): P/E is short for the ratio of a company s share price to its per-share earnings. We calculate the P/E by dividing the stock s current market capitalisation by its trailing 12-month net profit. A stock s price-to-earnings ratio divided by the growth rate of its net profit in the past 12 months. The price/earnings to growth (PEG) ratio is used to determine a stock s value while taking the company s earnings growth into account, and is considered to provide a more complete picture than the P/E ratio. The calculation for this ratio is P/E ratio TTM Net profit growth. This ratio compares the current stock price to its book value or net asset value. It is calculated by dividing the current market capitalisation by the shareholders funds of the company. It shows you how much a company pays out in dividends in the past 12 months relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. Dividend yield is calculated as Total Dividends Paid in the past 12 months Current Market Capitalisation. ROE (%): Net Interest Margin (%): Overhead Cost Ratio (%): Total Capital Ratio (%): Gross Impaired Loans Ratio (%): Loans Growth (%): Return on Equity (ROE) is the amount of net profit returned as a percentage of shareholders equity. Return on equity measures a corporation s profitability by revealing how much profit a company generates with the money shareholders have invested. Return on Equity = TTM Net Profit Average Shareholder s Equity in past 2 years This is a performance metric for banks. It measures the difference between the interest income generated by the bank (for example, from loans given out) and the amount of interest paid (for example, on customer deposits). This is a performance metric for banks. It measures the Overheads for the bank as a percentage of its Total Net Income. This is a performance metric for banks. It measures a bank s capital against its risk-weighted assets. This ratio is calculated and reported by the bank. This is a performance metric for banks. It measures a bank s Gross Impaired Loans as a percentage of Gross loans, advances and financing. This is a performance metric for banks. It measures a bank s Gross loans, advances and financing growth year-on-year. The Edge Market - Features v 1 WW 4

5 Financial - Features Income Statement Explanation on Income Statement Turnover: Value of a company s sales of goods and services to its customers. EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortisation. EBITDA is essentially net income with interest, taxes, depreciation and amortisation added back to it. It can be used to analyse and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions. Depreciation: A method of allocating the cost of a tangible asset over its useful life. EBIT: Earnings Before Interest and Tax. An indicator of a company s profitability, calculated as revenue minus expenses, excluding tax and interest. EBIT is also referred toas operating earnings, operating profit and operating income. Associates: Share of income from associate companies Interest Income: Interest earned on cash held in savings accounts, certificates of deposits or other investments. Interest Expense: Cost incurred by an entity for borrowed funds. Interest expense is a non-operating expense shown on the income statement. It represents interest payable on any type of borrowings bonds, loans, convertible debt or lines of credit. Interest expense on the income statement represents interest accrued during the period covered by the financial statements, and not the amount of interest actually paid over that period. Extraordinary Gain/(Loss): The term extraordinary refers to gains or losses that are infrequent and unusual. Basically an item is deemed extraordinary if it is not part of a company s ordinary, day-to-day operations. These include impairment of goodwill, negative goodwill, gains/losses from disposal of associates/investments that are not in the company s ordinary course of business. Pre-tax Profit: A company s earnings before tax. Net Profit Owners of Company: Net profit is calculated by subtracting a company s total expenses from Turnover, thus showing what the company has gained (or lost). The Edge Market - Features v 1 WW 5

6 Financial - Features Balance Statement Explanation on Balance Sheet Fixed Assets PPE: Fixed assets, also known as tangible assets or property, plant and equipment (PPE), is a term used in accounting for assets and property that cannot easily be converted into cash. Biological Assets: This includes investments in plantation development Intangibles & Goodwill:Intangibles asset is an asset that is not physical in nature. Corporate intellectual property, goodwill and brand recognition are all common intangible assets in today s marketplace. Goodwill is an intangible asset that arises as a result of the acquisition of one company by another for a premium value. The value of a company s brand name, solid customer base, good customer relations, good employee relations and any patents or proprietary technology represent goodwill. Cash and Equivalents: An item on the balance sheet that reports the value of a company s assets that are cash or can be converted into cash immediately. Total Current Assets: This represents the value of all assets that are reasonably expected to be converted into cash within one year in the normal course of business. Current assets include cash, accounts receivable, inventory, marketable securities, prepaid expenses and other liquid assets that can be readily converted to cash. ST Borrowings: A company s debts or obligations that are due within one year. Total Current Liabilities: This appears on the company s balance sheet and include short term debt, accounts payable, accrued liabilities and other debts. Total Assets: The sum of net current assets and long-term assets owned by the company. Shareholders Fund: The balance sheet value of shareholders interest in a company, comprising of share capital and reserves minus treasury shares. For the accounts of a company with no subsidiaries, it is total assets minus total liabilities. For consolidated group accounts the value of minority interests is excluded. Long Term Borrowings: Loans and financial obligations lasting over one year. Long Term Borrowings for a company would include any financing or leasing obligations that are to come due in a greater than 12-month period. The Edge Market - Features v 1 WW 6