Investment Charts & Indicators
The 7 key metrics every stock investor needs to understand. Plain-language definitions, formulas, and how to actually use them.
P/E Ratio
Price-to-Earnings Ratio
The P/E ratio tells you what you β the investor β are paying for each dollar this company earns. A P/E of 25 means you're paying $25 for every $1 of annual earnings. As a benchmark, the S&P 500's historical average P/E is around 15β20. Higher ratios suggest strong growth expectations or possible overvaluation.
EPS
Earnings Per Share
EPS reveals how much a company earned per share of stock. Positive EPS means the company is profitable. Negative or "N/A" EPS means the company is losing money β though this doesn't automatically disqualify a stock. Early-stage companies often lose money while building a dominant position.
Market Cap
Market Capitalization
Market cap is the total market value of all a company's outstanding shares. It tells you the size of a company β and size has real implications for risk and return potential.
52-Week Range
52-Week High & Low
The 52-week range shows the highest and lowest prices a stock has traded at over the past year. This gives you context on where the stock stands relative to its recent history β and helps identify potential entry points.
Volume
Trading Volume
Volume measures how many times a stock has been traded (bought and sold) in a given period. High volume β generally 100,000+ average daily trades β ensures you can buy or sell quickly without significantly affecting the price. Low-volume stocks can be illiquid and hard to exit.
Beta
Beta (Volatility Coefficient)
Beta measures how volatile a stock is relative to the broader market. If the market moves 1%, a stock with a Beta of 2 is expected to move 2% in the same direction.
Dividend Yield
Annual Dividend Yield
Dividend yield represents the annual cash payment from a company expressed as a percentage of the current share price. If a stock trades at $100 and pays $3 per year in dividends, the yield is 3%. This is income you receive simply for holding the stock.
Put These Metrics to Work
Our monthly watchlists apply these exact metrics to evaluate every stock and ETF we feature. See the analysis in action.
View Our Stock Watchlists β