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Financial Metrics Library
Every metric SledgeKey uses to screen stocks — what it measures, how to calculate it, and how to use it in your strategy.
Valuation
P/E Ratio
How much investors pay per dollar of earnings. The most widely used valuation metric.
P/B Ratio
Stock price relative to book value per share. A cornerstone of value investing.
P/S Ratio
Price relative to revenue. Especially useful for unprofitable growth companies.
EV/EBITDA
Enterprise value relative to operating earnings. Preferred by institutional analysts.
PEG Ratio
P/E adjusted for growth rate. Bridges the gap between value and growth investing.
Profitability
Return on Equity (ROE)
How efficiently a company turns shareholder equity into profit.
Return on Assets (ROA)
How effectively a company uses its total assets to generate earnings.
Net Profit Margin
The percentage of revenue that becomes profit after all expenses.
Gross Margin
Revenue remaining after cost of goods sold, a measure of production efficiency.
Growth
Leverage & Liquidity
Debt-to-Equity
Total debt relative to shareholder equity. A key measure of financial leverage and risk.
Current Ratio
Current assets divided by current liabilities. Tests a company's short-term solvency.
Interest Coverage
Earnings relative to interest expense. Shows whether a company can service its debt.