$5.$ 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$)$

$2$:$24$PM EDT Today

Price $18\mathrm{.}85$ USD

Change $+0\mathrm{.}64(+3\mathrm{.}51\%)$

Mkt cap $147\mathrm{.}1$B

Div$/$yield $0\mathrm{.}20/4\mathrm{.}24$

Shares $8,012$

Beta $0\mathrm{.}70$

Book value per share $$11\mathrm{.}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 $?9\mathrm{.}0408\mathrm{.}521$

Q$1($this year$)$

Last year

Net profit margin $15\mathrm{.}24\%12\mathrm{.}24\%$

Return on equity $11\mathrm{.}60\%9\mathrm{.}30\%$

One of the most important features of a stock is its book value. The book value per share of Verticon$$s 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 Verticon$$s control over its costs has since last year. You can tell based on the ROE that from the equity$-$holder$$s perspective, the overall profitability of the firm has $.$