Key Financial index

**Basic Indicators** (updates may be delayed by a few weeks after dividend distribution):

1. **P/E Ratio**: *Price-to-Earnings*. This ratio shows the price investors are willing to pay for each unit of profit the company generates.
- A P/E below 8 is considered good, meaning the company yields a 12.5% annual profit, which implies a payback period of 8 years.

2. **P/B Ratio**: *Price-to-Book Ratio*. This is used to compare a company's market value with its book value.
- A low P/B (usually below 1): May indicate that the stock is undervalued compared to the company’s net asset value. This can be a good investment opportunity but may also signal financial trouble.
- A high P/B (usually above 3): May suggest the stock is overvalued relative to the company’s net assets. This could reflect high growth expectations or potential overvaluation.

3. **D/E Ratio**: *Debt-to-Equity Ratio* is a financial metric that measures a company’s financial leverage.
D/E Ratio = Total Liabilities / Shareholders' Equity.
It compares the total liabilities of a company to its equity to indicate how much debt is used to finance its assets compared to shareholder investments.
- D/E Ratio below 1: Generally considered safe.
- D/E Ratio between 1 and 2: May be acceptable depending on the industry.
- D/E Ratio above 2: May indicate high financial risk.

4. **CR Ratio**: *Current Ratio*, an important liquidity metric used to assess a company’s ability to pay off short-term liabilities using its short-term assets.
- CR Ratio > 1: Indicates the company has enough current assets to pay off its short-term debts. The higher the ratio, the better the liquidity position.
- CR Ratio < 1: Suggests the company may face difficulties in meeting short-term obligations. This can be a red flag for financial stability.

5. **Profit Margin**: A key financial indicator that measures a company’s profitability relative to its revenue. It shows what percentage of revenue remains after all related costs are deducted.

**General significance of Profit Margin**:
- **Operational Efficiency**: A high profit margin indicates efficient cost management and the ability to generate strong profits from revenue.
- **Industry Comparison**: Comparing a company’s profit margin with its industry peers helps assess its competitive position and relative performance.

**Note**:
- There is no single “good” margin across all industries. Each industry has different cost structures and competition levels, leading to varying average margins.
- When analyzing profit margins, one must consider the industry context, the company’s business model, and market trends.

6. **Growth Expectation ↑**: This refers to the expected profit growth. The percentage figure reflects how much growth the market expects the company to achieve in the next financial report based on the current stock price.
- The lower the expected growth rate (typically below 15%), the safer the current price is considered.
- A high expected growth rate may indicate that the market anticipates a profit breakthrough or that the stock is trading above its intrinsic value relative to actual earnings.