What is Price-to-Earnings Ratio TTM (P/E)?
Compares a stock's price to its earnings per share over the past 12 months. A lower P/E suggests you pay less for each dollar of profit the company generates.
Read more →Financial Glossary
120 fundamental indicators organized into 5 VMCI pillars - explained in plain English.
Value (35%)
How cheap relative to fundamentals
28 indicators
What is Forward Price-to-Earnings (Forward P/E)?
Compares today's stock price to next year's estimated earnings per share. It reflects what the market expects the company to earn, not what it has already reported.
Read more →What is Price-to-Book Ratio (P/B)?
Compares a stock's market price to its book value per share - the accounting value of the company's net assets. A ratio below 1.0 means the stock trades below its stated asset value.
Read more →What is Price-to-Sales Ratio (P/S)?
Compares a stock's price to its revenue per share. Useful for valuing companies that are not yet profitable, since revenue is harder to manipulate than earnings.
Read more →What is Price-to-Cash Flow (P/CF)?
Compares a stock's price to its operating cash flow per share. Cash flow is harder to manipulate than earnings, making this ratio a more reliable valuation check.
Read more →What is Price-to-Free Cash Flow (P/FCF)?
Compares a stock's price to its free cash flow per share - the cash left after all operating expenses and capital investments. This is the cash truly available to shareholders.
Read more →What is PEG Ratio?
Adjusts the P/E ratio for expected earnings growth. A PEG of 1.0 means the P/E equals the growth rate. Below 1.0 is often seen as undervalued relative to growth prospects.
Read more →What is Enterprise Value to EBITDA (EV/EBITDA)?
Compares a company's total value (including debt) to its earnings before interest, taxes, depreciation, and amortization. A capital-structure-neutral alternative to P/E, widely used in professional valuation.
Read more →What is Enterprise Value to Revenue (EV/Revenue)?
Compares a company's total enterprise value (market cap plus net debt) to its revenue. Like P/S but accounts for debt and cash, giving a fuller picture of what acquirers would pay per dollar of sales.
Read more →What is Enterprise Value to Free Cash Flow (EV/FCF)?
Compares enterprise value to free cash flow. Combines the capital-structure neutrality of EV with the cash-generation focus of FCF, giving a clear picture of how much you pay for each dollar of distributable cash.
Read more →What is Enterprise Value to EBIT (EV/EBIT)?
Compares enterprise value to operating earnings (EBIT). Accounts for depreciation unlike EV/EBITDA, making it a stricter and often more accurate enterprise valuation multiple.
Read more →What is Earnings Yield?
The inverse of the P/E ratio - shows what percentage return each dollar invested "earns" at the current price. Easily compared to bond yields and other assets.
Read more →What is Free Cash Flow Yield (FCF Yield)?
Shows the percentage of free cash flow generated per dollar of stock price. Higher FCF yield means more cash generation relative to what you pay. Often considered the most reliable yield metric.
Read more →What is Owner Earnings Yield?
Warren Buffett's preferred cash flow measure, expressed as a yield. Calculates net income plus depreciation minus maintenance capex, divided by market cap. Approximates the true cash an owner could extract.
Read more →What is Gross Profit Yield?
Measures gross profit relative to enterprise value. Based on Robert Novy-Marx's research showing that profitable firms trading at low enterprise multiples deliver strong returns.
Read more →What is Cash Yield?
Shows what percentage of a company's market cap is held in cash and equivalents. High cash yield means the company holds a large cash cushion relative to its stock price.
Read more →What is Graham Number?
A fair value estimate from Benjamin Graham that combines earnings and book value. If the stock price is below the Graham Number, the stock may be undervalued by Graham's standards.
Read more →What is Normalized Price-to-Earnings (Normalized P/E)?
Smooths earnings over 5 years to remove one-time spikes or dips. Gives a more stable valuation picture than single-year P/E, especially for cyclical businesses.
Read more →What is DCF Intrinsic Value?
Estimates what a stock is worth today based on projected future free cash flows, discounted back to present value. The gold standard of fundamental valuation methods.
Read more →What is Margin of Safety?
The percentage discount between a stock's estimated intrinsic value and its market price. A larger margin of safety provides more protection against errors in your valuation.
Read more →What is Price-to-Tangible Book (P/Tangible Book)?
Like P/B but excludes intangible assets and goodwill from book value. Gives a cleaner picture of what the company's hard, physical assets are worth relative to its stock price.
Read more →What is Price-to-Graham Number (Price/Graham)?
Compares the current stock price to the Graham Number. A ratio below 1.0 means the stock trades below Graham's fair value estimate. The lower the ratio, the larger the implied discount.
Read more →What is Enterprise Value to Invested Capital (EV/Invested Capital)?
Compares enterprise value to the capital invested in the business (equity plus net debt). Pairs naturally with ROIC - a company earning high returns on capital deserves a higher EV/IC multiple.
Read more →What is Dividend Yield?
The annual dividend payment expressed as a percentage of the stock price. A 4% dividend yield means you receive $4 in dividends for every $100 invested at the current price.
Read more →What is Buyback Yield?
Measures the percentage of outstanding shares a company repurchased over the past year. Buybacks reduce share count, increasing each remaining share's claim on earnings and assets.
Read more →What is Shareholder Yield?
Measures the return a company earns on all capital invested in the business, whether from debt or equity. Joel Greenblatt uses ROIC in his Magic Formula. When ROIC exceeds the cost of capital, the company is creating value for shareholders.
Read more →What is Graham Net-Net Value?
Similar to ROIC but uses pre-tax earnings (EBIT) to measure how well a company generates profits from its capital base. Above 15% is generally good. Particularly popular in UK and European financial analysis.
Read more →What is Analyst Price Target Upside?
The percentage of revenue remaining after subtracting the direct costs of making a product or delivering a service. High gross margins indicate strong pricing power. Software companies often exceed 70%, while retailers typically operate at 25-30%.
Read more →Quality (30%)
Profitability, efficiency & consistency
41 indicators
What is Return on Equity (ROE)?
The percentage of revenue left after paying all operating expenses but before interest and taxes. This shows how efficiently the core business runs. Above 15% is generally strong. Consistently expanding margins signal improving business quality.
Read more →What is Return on Assets (ROA)?
The percentage of every revenue dollar that becomes bottom-line profit after all expenses. Above 10% is strong for most industries. Persistently high net margins often indicate a company has a competitive moat protecting its business.
Read more →What is Return on Invested Capital (ROIC)?
Profitability before the effects of debt, taxes, and depreciation. Useful for comparing companies across different tax jurisdictions and capital structures. Above 20% is generally strong. Often used in merger and acquisition analysis.
Read more →What is Return on Capital Employed (ROCE)?
The percentage of revenue that converts to free cash flow. This is arguably the most honest profitability metric because free cash flow is difficult to manipulate. Above 10% is strong. Capital-light businesses like software companies tend to have the highest FCF margins.
Read more →What is Gross Margin?
The percentage of revenue converted to operating cash flow before capital expenditures. Compare to operating margin: when OCF margin is much higher, the company has favorable working capital dynamics that boost cash generation.
Read more →What is Operating Margin?
Like ROA but excludes intangible assets such as goodwill. This gives a clearer view of how well the company's physical assets generate profit, especially useful for evaluating companies that have made many acquisitions.
Read more →What is Net Profit Margin?
Net operating profit after tax as a percentage of revenue. Strips out interest expense and one-time items to show the true after-tax profitability of core operations. It's the numerator used to calculate ROIC.
Read more →What is EBITDA Margin?
Measures the return earned on the most recent new capital invested. While ROIC shows the average return on all capital, incremental ROIC reveals whether each additional dollar invested is creating or destroying value. Above 15% is strong.
Read more →What is Free Cash Flow Margin (FCF Margin)?
Revenue generated per dollar of total capital. Capital-efficient businesses need less money to grow, meaning less need for debt or stock issuance. Above 1.0 means the company generates more than one dollar of revenue for each dollar of capital.
Read more →What is Operating Cash Flow Margin (OCF Margin)?
Gross profit divided by the number of employees. Indicates workforce productivity and business model scalability. Technology and financial companies tend to lead this metric. Above $150,000 is generally strong.
Read more →What is Return on Tangible Assets?
Compares total debt to shareholder equity. Below 0.5 is conservative, 0.5-1.0 is moderate, and above 2.0 is aggressive. Benjamin Graham preferred companies with conservative balance sheets. Rising D/E over time is an early warning sign.
Read more →What is NOPAT Margin?
Shows what percentage of total assets are financed by debt. Below 0.3 is conservative. Above 0.5 means more than half the company's assets are debt-financed, which increases risk, especially during economic downturns.
Read more →What is Incremental ROIC?
The number of years it would take to pay off net debt using EBITDA. Below 2 is healthy. Above 4 raises concern about the company's ability to manage its obligations. A negative value means the company has more cash than debt.
Read more →What is Capital Efficiency?
Current assets divided by current liabilities. Shows whether a company can pay its short-term bills. Above 1.5 is acceptable, above 2.0 is strong. Benjamin Graham required at least 2.0 for defensive stock selections.
Read more →What is Gross Profit per Employee?
Like the current ratio but excludes inventory, which may be hard to sell quickly. Also called the "acid test." Above 1.0 means the company can cover short-term obligations without selling inventory.
Read more →What is Gross Margin Stability?
The most conservative liquidity measure - only cash and equivalents divided by current liabilities. Above 1.0 means the company could pay off all short-term obligations immediately with cash on hand.
Read more →What is Gross Margin Trend 5Y?
How many times over a company can pay its interest expenses from operating earnings. Above 5x is comfortable, above 10x is very strong. Benjamin Graham required at least 5x for industrial companies in his defensive investor criteria.
Read more →What is Net Margin Trend 5Y?
A bankruptcy prediction model that combines five financial ratios into one score. Above 3.0 is the safe zone. Between 1.81 and 2.99 is the grey zone with some risk. Below 1.81 signals high bankruptcy risk within two years.
Read more →What is ROIC Consistency?
A 9-point scoring system that tests a company's financial strength across profitability, leverage, and efficiency. Scores of 7-9 signal strong financial health, while 0-3 signal weakness. It helps separate genuine value stocks from value traps.
Read more →What is Earnings Quality?
An earnings manipulation detection model that flags companies potentially inflating their profits. An M-Score above -2.22 suggests higher probability of earnings manipulation. The model famously flagged Enron before its collapse.
Read more →What is Consecutive Revenue Growth Years?
The proportion of permanent capital from long-term debt versus equity. Below 0.3 is conservative and gives the company financial flexibility. Above 0.5 indicates heavy reliance on debt financing.
Read more →What is ROE Stability?
Total assets divided by shareholder equity. Measures how much a company relies on debt to finance its assets. Below 2.5 is moderate. High leverage boosts returns in good times but amplifies losses in downturns.
Read more →What is Dividend Growth Streak?
Net working capital as a proportion of total assets. One of the five components of the Altman Z-Score. Above 0.2 is healthy. Negative values mean short-term debts exceed short-term assets, a warning sign for most companies.
Read more →What is Positive Earnings Streak?
What percentage of total assets is held in cash. A healthy cash position buffers against downturns. Above 10% is a reasonable baseline. Very high ratios may suggest management lacks good reinvestment opportunities.
Read more →What is SGA Efficiency Trend?
Tangible equity (total equity minus intangibles and goodwill) divided by tangible assets. Strips out goodwill and intangibles to reveal the hard-asset equity cushion. Above 30% is strong; below 10% suggests the balance sheet relies heavily on intangible assets that may be impaired in a downturn.
Read more →What is CapEx Consistency?
The year-over-year percentage change in total revenue. Above 8% is solid for mature companies. Consistent revenue growth indicates a company is gaining market share or expanding into new markets.
Read more →What is Operating Cash Flow to Debt (OCF/Debt)?
The compound annual growth rate of revenue over three years. Smooths out year-to-year volatility to show the sustainable growth trend. Above 10% is strong. Accelerating CAGR is a positive signal.
Read more →What is Free Cash Flow Conversion (FCF Conversion)?
The compound annual growth rate of revenue over five years. A longer view that captures a full business cycle. Above 8% is solid. Consistent 5Y growth above 15% in a large company signals a strong competitive position.
Read more →What is Accrual Ratio?
Year-over-year growth in earnings per share. Captures both profit improvement and the benefit of share buybacks. Peter Lynch considered consistent EPS growth one of the most important characteristics of winning stocks.
Read more →What is Free Cash Flow per Share Growth 3Y (FCF/Share CAGR 3Y)?
The compound annual growth rate of earnings per share over three years. Smooths out volatility and is a key input for PEG ratio calculations. Above 12% is strong. Compare to revenue CAGR to assess margin trends.
Read more →What is Cash Return on Capital?
The compound annual growth rate of earnings per share over five years. Companies maintaining double-digit EPS growth over five years typically have genuine competitive advantages. A key input for long-term value assessments.
Read more →What is Asset Turnover?
Year-over-year growth in total net income, before the impact of share count changes. Compare to EPS growth: if net income growth is much lower, share buybacks are driving per-share improvement rather than actual business growth.
Read more →What is Inventory Turnover?
Year-over-year growth in free cash flow. Since FCF is harder to manipulate than earnings, growing FCF provides stronger confirmation of genuine business improvement. Above 10% is solid.
Read more →What is Receivables Turnover?
The compound annual growth rate of free cash flow over three years. FCF can be lumpy year to year, so the 3-year CAGR provides a smoother view of the underlying cash generation trend.
Read more →What is Fixed Asset Turnover?
The compound annual growth rate of book value per share over three years. Warren Buffett emphasizes book value growth as a proxy for intrinsic value growth. Above 8% is solid for most companies.
Read more →What is Revenue per Employee?
The compound annual growth rate of dividends per share over three years. Consistent dividend growth signals management confidence in future earnings. Above 5% is solid. Compare to EPS growth to check sustainability.
Read more →What is Working Capital Turnover?
The compound annual growth rate of dividends over five years, capturing a full business cycle. Companies maintaining dividend growth through economic cycles demonstrate financial resilience. Dividend Aristocrats typically show consistent 5Y growth.
Read more →What is ROIC-WACC Spread?
Year-over-year growth in operating income. Focuses on core business profitability, excluding financing and taxes. When operating income grows faster than revenue, the company is gaining operating leverage.
Read more →What is Sustainable Growth Rate?
Measures how predictable revenue has been over five years using statistical analysis. Above 0.9 indicates very stable, predictable revenue. Subscription businesses and utilities tend to score highest. Low stability makes a company harder to value.
Read more →What is Free Cash Flow to Revenue (FCF/Revenue)?
Measures how predictable earnings per share have been over five years. Stable earnings make a company easier to value. Benjamin Graham preferred companies with earnings stability as a margin of safety against overpaying.
Read more →What is Dividend Coverage Ratio?
The cash a business generates after paying for capital expenditures. Warren Buffett considers this the most important number for valuing a business because it represents money that can actually be returned to shareholders or reinvested in growth.
Read more →Integrity (15%)
Balance sheet strength & accounting quality
16 indicators
What is Debt-to-Equity Ratio (D/E)?
Operating cash flow divided by total debt. Measures how quickly a company could repay all its debt from operating cash flow alone. Above 0.5 means the company could theoretically pay off all debt in two years from operations. Below 0.15 signals heavy debt relative to cash generation.
Read more →What is Debt-to-Assets Ratio?
Free cash flow divided by net income. Above 1.0 means the company generates more cash than its reported profits, a hallmark of high-quality earnings. Consistently below 0.7 is a red flag.
Read more →What is Net Debt to EBITDA (Net Debt/EBITDA)?
Compares operating cash flow to net income. When cash flow exceeds earnings, the company's profits are well-supported by actual cash. This is one of the nine criteria in the Piotroski F-Score.
Read more →What is Current Ratio?
What percentage of revenue must be reinvested in capital assets. Below 8% is capital-light and attractive. Buffett prefers businesses that don't require large ongoing capital outlays to maintain their competitive position.
Read more →What is Quick Ratio?
What percentage of operating cash flow is consumed by capital expenditures. The remainder is free cash flow. Below 40% leaves ample cash for dividends, buybacks, and growth investments.
Read more →What is Cash Ratio?
How many days it takes to convert inventory and receivables into cash. Shorter is better. A negative cycle (like Amazon's) means the company collects cash from customers before paying suppliers.
Read more →What is Interest Coverage Ratio?
The average number of days to collect payment after a sale. Below 45 days is strong. A sudden increase can signal deteriorating customer credit quality or aggressive revenue recognition.
Read more →What is Altman Z-Score?
The average number of days inventory sits before being sold. Lower means faster turnover and less capital tied up. Below 60 days is generally efficient. Rising DIO can signal demand problems.
Read more →What is Piotroski F-Score?
How many days a company takes to pay its suppliers. Higher DPO conserves cash. When DPO exceeds DSO, the company gets paid by customers before paying suppliers, which is favorable.
Read more →What is Beneish M-Score?
The compound annual growth of free cash flow per share over three years. Captures both FCF growth and share buyback effects. Growing FCF per share is the foundation of sustainable dividend increases.
Read more →What is Long-Term Debt to Capitalization (LT Debt/Cap)?
Operating cash flow divided by shares outstanding. More reliable than EPS for companies with significant non-cash charges. When OCF per share consistently exceeds EPS, it signals high-quality earnings.
Read more →What is Financial Leverage Ratio?
Operating cash flow divided by total capital invested. Unlike ROIC which uses accounting profits, this uses actual cash flow, providing a harder-to-manipulate view of how well capital is deployed.
Read more →What is Working Capital to Assets?
Revenue generated per dollar of total assets. Measures how efficiently a company uses its assets. Part of both DuPont analysis and the Piotroski F-Score. Retail businesses typically have high asset turnover.
Read more →What is Cash to Total Assets?
How many times a company sells and replaces its inventory in a year. Higher means faster sales and less capital tied up in stock. Above 6 is generally efficient. Grocery stores often exceed 12.
Read more →What is Tangible Equity Ratio?
How efficiently a company collects cash from credit sales. Higher is better. Declining receivables turnover may signal customers are taking longer to pay, which could foreshadow bad debt problems.
Read more →What is Cash Conversion Cycle?
Revenue generated per dollar of property, plant, and equipment. Shows how well physical assets are utilized. Above 3 is generally efficient. Low ratios may indicate overcapacity or underutilized assets.
Read more →Growth (12%)
Revenue, earnings & cash flow trajectory
15 indicators
What is Revenue Growth 1Y?
Overhead costs (selling, general, and administrative expenses) as a percentage of revenue. Below 30% is generally efficient. Buffett notes that companies with consistently low SGA ratios tend to have durable competitive advantages.
Read more →What is Revenue CAGR 3Y?
Research and development spending as a percentage of revenue. The ideal range depends on industry: tech companies often spend 15-25%. Too little may mean underinvestment in the future; too much may burden profitability.
Read more →What is Revenue CAGR 5Y?
Total operating expenses divided by revenue. Below 0.8 indicates a healthy 20%+ operating margin. Above 1.0 means the company isn't covering operating costs with revenue. A declining ratio signals improving efficiency.
Read more →What is EPS Growth 1Y?
Total revenue divided by employee headcount. Measures workforce productivity and business scalability. Technology companies with platform models tend to lead. Above $300,000 is generally strong.
Read more →What is EPS CAGR 3Y?
How quickly a company pays its suppliers. Lower turnover conserves cash. Very low turnover may strain supplier relationships. Compare to receivables turnover for a complete working capital picture.
Read more →What is EPS CAGR 5Y?
Revenue divided by working capital. Higher turnover means less capital needed per dollar of revenue. Some companies like Amazon operate with negative working capital, which is actually a sign of business model strength.
Read more →What is Net Income Growth 1Y?
Annual dividend income as a percentage of the stock price. The 2-5% range is ideal for most income investors. Very high yields above 6% may signal a dividend cut is coming, so always check the payout ratio.
Read more →What is Free Cash Flow Growth 1Y (FCF Growth 1Y)?
The percentage of earnings paid out as dividends. Between 25-60% is the sweet spot: enough to reward shareholders while retaining capital for growth. Above 100% means dividends exceed earnings, which is unsustainable.
Read more →What is Free Cash Flow CAGR 3Y (FCF CAGR 3Y)?
The value of shares repurchased as a percentage of market cap. Buybacks reduce share count, increasing each remaining share's claim on earnings. Above 2% is meaningful. Most value-creating when done below intrinsic value.
Read more →What is Book Value Growth 3Y?
Total cash returned to shareholders through dividends, buybacks, and debt reduction combined. Above 5% is strong. This gives a more complete picture than dividend yield alone, as buybacks and debt paydown also create value.
Read more →What is Dividend Growth 3Y?
The percentage difference between the consensus analyst price target and the current stock price. Positive values suggest analysts expect the stock to rise. Above 20% is a bullish signal; negative values mean analysts think the stock is overpriced.
Read more →What is Dividend Growth 5Y?
Benjamin Graham's net current asset value per share: current assets minus total liabilities, divided by shares outstanding. A positive value above the stock price is a classic deep-value signal, meaning you're buying the company for less than its liquidation value.
Read more →What is Operating Income Growth 1Y?
The combined return from price appreciation and dividends over the past year. This is what shareholders actually received. Compare to the S&P 500 for context. Strong fundamentals with poor returns may signal a buying opportunity.
Read more →What is Revenue Stability?
Compound annual total return over three years. A medium-term performance measure that smooths out single-year noise. Above 12% is strong. Strong 3Y returns combined with improving fundamentals is the most bullish signal.
Read more →What is EPS Stability?
How consistent gross margins have been over five years. Low variability signals stable pricing power. Below 3 percentage points of variation is excellent. High variability suggests exposure to commodity prices or competitive pressures.
Read more →Risk (8%)
Volatility, leverage & downside exposure
20 indicators
What is Beta (Market Sensitivity)?
Whether gross margins are improving or declining over five years. A positive trend means the company is gaining pricing power or reducing costs. Negative trends in a mature business are a warning sign.
Read more →What is 52-Week Price Volatility?
Whether bottom-line profitability is improving or declining over five years. A positive trend indicates the business is becoming more profitable. The most durable improvement comes from expanding gross margins rather than cost-cutting.
Read more →What is Maximum Drawdown 1Y (Max Drawdown)?
The lowest ROIC recorded over five years. A company with a high minimum ROIC (above 10%) maintains strong returns even in bad years, indicating a genuinely strong business with a durable competitive advantage.
Read more →What is Free Cash Flow to Enterprise (FCF to Firm)?
Measures the accrual component of earnings relative to total assets. When cash flow exceeds reported earnings, the company has high-quality earnings. Large accruals relative to assets are a red flag for potential manipulation.
Read more →What is Operating Leverage?
How many years in a row the company has grown revenue. Above 5 is strong, above 10 is exceptional. Long streaks indicate consistent demand and management execution. A break in a long streak deserves careful investigation.
Read more →What is Short-Term Debt Ratio?
The lowest ROE recorded in the past five years. Buffett looks for companies with consistently high ROE, not just high average ROE. Above 12% minimum over five years signals a genuinely high-quality business.
Read more →What is Debt Service Coverage Ratio?
How many consecutive years the company has increased its dividend. Companies with 25+ years of increases are called Dividend Aristocrats. A long streak demonstrates management discipline and financial resilience.
Read more →What is Capital Expenditure to Revenue (CapEx/Revenue)?
How many consecutive years the company has reported positive profits. Graham required a full decade of positive earnings. Companies with unbroken streaks across recessions likely have durable business models.
Read more →What is Capital Expenditure to Operating Cash Flow (CapEx/OCF)?
Whether overhead costs are rising or falling relative to revenue. A negative trend (improving efficiency) means each dollar of overhead supports more revenue over time, indicating growing operating leverage.
Read more →What is Days Sales Outstanding (DSO)?
How volatile capital expenditures have been over five years. Consistent capex spending makes future free cash flow easier to forecast. Companies with predictable capex are easier to value using DCF models.
Read more →What is Days Inventory Outstanding (DIO)?
The percentage change in stock price over the trailing twelve months. Negative returns with strong fundamentals may signal a buying opportunity. Persistently negative returns despite good fundamentals warrant deeper investigation.
Read more →What is Days Payable Outstanding (DPO)?
Warren Buffett's preferred measure of earning power relative to stock price. It strips out accounting distortions and estimates the actual cash an owner could extract without harming the business. Above 8% is attractive.
Read more →What is Operating Cash Flow per Share (OCF/Share)?
The percentage change in shares outstanding over the past year. Below 0% (shrinking share count) is ideal. Above 2% is a yellow flag. Above 5% indicates aggressive stock issuance that erodes per-share value.
Read more →What is Selling General & Administrative to Revenue (SGA/Revenue)?
How much a stock moves relative to the overall market. A beta of 1.0 moves in line with the market. Below 0.5 is defensive; above 1.5 amplifies market swings. Most value investors prefer stocks with beta between 0.5 and 1.2.
Read more →What is Research & Development to Revenue (R&D/Revenue)?
A measure of how much the stock price fluctuates over a year. Below 25% is moderate. Above 40% is high volatility. Lower volatility stocks tend to have more predictable returns and are easier to hold through turbulence.
Read more →What is Operating Expense Ratio (Opex Ratio)?
The largest peak-to-trough decline in stock price over the past year. Drawdowns beyond 30% often take years to recover from. Compare to market drawdowns during the same period to assess whether the decline was company-specific.
Read more →What is Payables Turnover?
Free Cash Flow to the Firm (FCFF) measures the cash available to all capital providers after operating expenses and capital investments. Calculated as NOPAT + Depreciation − CapEx − Change in Working Capital. A positive and growing FCFF signals robust cash generation.
Read more →What is Payout Ratio?
How sensitive operating income is to changes in revenue. High operating leverage means small revenue increases produce large profit increases - and vice versa. Companies with high fixed costs exhibit high operating leverage.
Read more →What is Total Return 1Y?
What proportion of total debt matures within one year. Below 25% is conservative. Above 50% creates significant refinancing risk, especially if credit markets tighten during an economic downturn.
Read more →What is Total Return 3Y CAGR?
EBITDA divided by total debt service (interest expense plus short-term debt). Measures how comfortably a company can meet its near-term debt obligations from operating earnings. Above 3x is comfortable; below 1.5x signals potential distress if cash flows decline.
Read more →Learn How to Use These Indicators
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Quantitative tests for financial health and accounting integrity
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Read income statements, balance sheets, and cash flow statements
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Explore Analyst Plan →Frequently Asked Questions
Getting Started
What is a financial indicator?+
A financial indicator, or Key Performance Indicator (KPI), is a metric derived from a company's financial statements and market data that measures a specific aspect of business performance or valuation. Examples include P/E ratio (price relative to earnings), Return on Equity (ROE), and Debt-to-Equity ratio. Investors track indicators to assess whether a stock is cheap, profitable, financially healthy, or growing. ValueMarkers tracks 120 carefully selected indicators to give you a complete picture of any company.
How many KPIs does ValueMarkers track?+
ValueMarkers tracks 120 fundamental indicators across all 5 VMCI pillars: VALUE (28 indicators), QUALITY (41 indicators), INTEGRITY (16 indicators), GROWTH (15 indicators), and RISK (20 indicators). Free users see 30 core indicators across all pillars. Analyst and Professional plans unlock all 120, giving you complete visibility into every dimension of business fundamentals.
What are the five VMCI pillars?+
The five VMCI pillars are: (1) VALUE (35% weight) - How cheap is the stock? Includes P/E, P/B, P/S, EV/EBITDA, FCF yield, and intrinsic value metrics. (2) QUALITY (30% weight) - How profitable and efficient is the business? Includes ROE, ROIC, profit margins, cash flow quality. (3) INTEGRITY (15% weight) - How financially healthy and stable is the company? Includes debt ratios, Altman Z-Score, Piotroski F-Score, Beneish M-Score. (4) GROWTH (12% weight) - Is revenue and earnings growing? Includes 1Y, 3Y, and 5Y CAGR metrics. (5) RISK (8% weight) - How volatile and leveraged is the stock? Includes beta, volatility, debt service coverage, capex intensity.
Using the Glossary
How should I interpret a high or low indicator value?+
Context matters enormously when interpreting indicators. A "high" value is not always better - it depends on the indicator. For example, a low P/E ratio suggests the stock is cheap, which is good. But a low ROIC means the business is not profitable, which is bad. Additionally, compare each indicator within its industry: a P/E of 25 might be expensive for a utility but cheap for a growth tech company. ValueMarkers shows you the percentile rank of each indicator, so you can see how a stock compares to the broader market. A percentile of 80 means the stock ranks better than 80% of all tracked stocks on that metric.
Which indicators are available on the free plan?+
The free Explorer plan includes 30 core indicators carefully selected for essential due diligence. You get access to important VALUE metrics (P/E, P/B, Price-to-Sales, Margin of Safety), key QUALITY metrics (ROE, ROIC, gross margin), INTEGRITY measures (Altman Z-Score, debt ratio), GROWTH metrics, and RISK indicators. You also get the full Quality Triple Check (Piotroski F-Score, Altman Z-Score, Beneish M-Score) on all free stocks. The Analyst and Professional plans unlock the full 120-indicator library.
Can I screen stocks using these indicators?+
Yes. The ValueMarkers screener lets you filter stocks by many of these indicators. You can search for stocks with a P/E below 20, ROIC above 15%, Piotroski F-Score above 7, or any combination of conditions. Free users can filter by a subset of indicators and 4 major exchanges. Analyst and Professional users unlock the full filter palette across all 73 global exchanges. You can also use natural language search (Analyst+) to describe what you're looking for: "profitable tech stocks with low debt and insider buying." Start building a screen at /screener.
Data & Methodology
How often are indicators updated?+
Financial indicators are recalculated daily after market close using the latest financial data sourced from the Financial Modeling Prep (FMP) API. Stock prices refresh every 5 minutes during market hours. Full financial statements (income statement, balance sheet, cash flow) are updated daily once official SEC filings or regulatory disclosures are released. Analyst estimates and earnings calendars also update daily. ValueMarkers automatically recomputes all 120 indicators and the VM Score daily, ensuring you are always working with current fundamental data.
What is the VM Score?+
The VM Score (or VMCI - ValueMarkers Composite Index) is a composite 0-100 score that ranks every stock based on research-backed weights across all 120 fundamental indicators. A score of 70+ indicates strong fundamentals, 40-69 is average, and below 40 suggests weak fundamentals or high valuation risk. The score is relative - it compares your stock against all others in the database by percentile rank. The five pillars are weighted as follows: VALUE (35%), QUALITY (30%), INTEGRITY (15%), GROWTH (12%), RISK (8%). ValueMarkers uses this methodology inspired by the work of Benjamin Graham, Warren Buffett, and Joseph Piotroski.
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