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 do they mean. Use the following tables to assess the worthiness of Frontstop stock as an investment. Frontstop Stock Data (Current and Historical) 2:24PM EDT Aug 16, 2011 Price 7.49 USD Change +0.44 (+5.8%) Mkt cap 583.16M Div/yield 0.10/16.02 Shares 77.86 Beta 1.18 Book/share 9.6997 12/2008 12/2010 12/2009 (Millions of Dollars) 3,798 3,715 4,028 Total Assets Total Liabilities 3,051 2,974 3,326 Preferred Shareholders' Equity 21 18 16 Common Shareholders' Equity 726 723 686 Shares Outstanding 72.34 70.89 65.84 Book/Share ? 10.199 10.419 Q1 (Mar '11) 2010 Net profit margin 7.20% 14.07% Return on equity 8.26% 21.69% One of the most important features of a stock is its book value. The book value per share of Frontstop's stock for the year 2010 was equal to 10.036 Frontstop's book value per share has been rising since 2008, a fact that reflects well on the company's overall growth. You can see from the net profit margin that Frontstop's control over its costs has improved since 2010. You can tell based on the ROE that from the equity-holder's perspective, the overall profitability of the firm has risen since 2010