Financial Term Updating

CFD

CFD stands for Contract for Difference CFDs are financial derivatives that allow traders to speculate on the price movements of various financial instruments, such as stocks, commodities, indices, or currencies, without actually owning the underlying asset

Net Income

The company’s profits after all expenses

Total Assets

The sum of all assets (both current and non-current) owned by the company

Foreign Exchange

FX, forex, foreign exchange market, and currency market are involves the conversion of one currency into another

Financial Metric

EPS

EPS stands for Earnings Per Share, it represents how much profit a company has generated per each outstanding share of its stock.
$$
\text{EPS} = \frac{\text{Net Income} - \text{Preferred Dividends}}{\text{End-of-Period Common Shares Outstanding}}
$$

YoY

YoY stands for Year-over-Year, It assesses the change in a specific metric (such as revenue, profit, or EPS) from one year to the next.

PE

PE stands for Price-to-Earnings (P/E) ratio, it measures a company’s share price relative to its earnings per share (EPS).
$$
\text{P/E Ratio} = \frac{\text{Market Value Per Share}}{\text{Earnings Per Share}}
$$

• A high P/E ratio could mean:
  • The company’s stock is overvalued.
  • Investors expect high growth rates.
• Companies with no earnings or those losing money don’t have a P/E ratio because there’s nothing to put in the denominator.

ROA

ROA stands for Return on Assets, it indicates how profitable a company is in relation to its total assets.
$$
\text{ROA} = \frac{\text{Net Income}}{\text{Total Assets}}
$$
ROA varies by industry, so it’s best to compare a company’s ROA against its historical performance or similar companies within the same