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5 . Key performance measures Measuring Stock Performance An informed and prudent investor uses a variety of measures such as financial ratios, book value, earnings

5. Key performance measures
Measuring Stock Performance
An informed and prudent investor uses a variety of measures such as financial ratios, book value, earnings per share, return on equity etc. to evaluate the worthiness and prospects of stocks he/she would invest in. It is important for you as an investor to understand how these values are calculated and what they mean.
Use the following tables to assess the worthiness of Verticon stock as an investment.
Verticon Stock Data (Current and Historical)
2:24PM EDT Today
Price 18.85 USD
Change +0.64(+3.51%)
Mkt cap 147.1B
Div/yield 0.20/4.24
Shares 8,012
Beta 0.70
Book value per share $11.335
One year ago
Two years ago
Three years ago
(Millions of Dollars)
Total Assets 195,014195,949111,148
Total Liabilities 107,201122,93553,592
Preferred Shareholders Equity 526173
Common Shareholders Equity 87,76172,95357,483
Shares Outstanding 8,0128,0706746
Book Value Per Share ?9.0408.521
Q1(this year)
Last year
Net profit margin 15.24%12.24%
Return on equity 11.60%9.30%
One of the most important features of a stock is its book value. The book value per share of Verticons stock last year was equal to .
Looking at the , you can see that this stock is relatively volatile than the market as a whole.
You can see from the net profit margin that Verticons control over its costs has since last year. You can tell based on the ROE that from the equity-holders perspective, the overall profitability of the firm has .

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