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Course · 26 lessons
Growth & Capital Returns
Measure growth and how a company returns cash — dividends, buybacks, and per-share math.
Revenue Growth
The percentage change in a company's total sales (revenue) from one period to the same period a year earlier.
EPS Growth
The percentage change in earnings per share (net profit divided by share count) from one period to the same period a year earlier.
Free Cash Flow Growth
The percentage change in free cash flow (cash from operations minus capital spending) from one period to the same period a year earlier.
Compound Annual Growth Rate
The steady yearly growth rate that would take a starting value to an ending value over a number of years, as if it compounded smoothly.
Rule of 40
A growth-plus-profit health check for software firms: revenue growth % plus profit margin % should be at least 40.
Earnings Per Share
EPS is a company's net profit divided by its shares outstanding, showing how much profit each share earned.
Diluted EPS
Diluted EPS is earnings per share calculated as if all dilutive stock options and convertibles had been turned into shares.
Share Dilution
Share dilution is the drop in existing owners' percentage stake when a company issues new shares.
Shares Outstanding
Shares outstanding is the total number of a company's shares currently held by all investors.
Book Value Per Share
BVPS is the company's net assets attributable to common shareholders divided by common shares outstanding, the per-share accounting value of the business.
Free Cash Flow Per Share
FCF per share is the cash a company generates after capital spending, divided by its shares outstanding.
Dividend
A cash (or sometimes stock) payment a company distributes to shareholders out of its profits, usually on a regular schedule.
Forward Dividend
The expected total dividend per share over the next 12 months, based on the current rate.
Dividend Payout Ratio
The payout ratio is the share of a company's earnings paid out as dividends rather than kept for reinvestment.
Dividend Coverage Ratio
How many times a company's earnings (or cash flow) can cover its dividend payments.
Dividend Growth Rate
The annualized rate at which a company raises its dividend per share over time.
Dividend Aristocrat
A company with a long, unbroken record of annual dividend increases, typically 25+ years in the U.S.
Special Dividend
A one-time, non-recurring dividend paid outside a company's regular schedule.
Dividend Reinvestment Plan
A program that automatically uses your cash dividends to buy more shares of the same stock.
Ex-Dividend Date
The cutoff date on which a stock begins trading without the right to the next declared dividend; buyers on or after it do not receive it.
Share Buyback
A company repurchasing its own shares from the market, which reduces shares outstanding and returns cash to shareholders.
Buyback Yield
Buyback yield is the percentage of a company's market value returned to shareholders through net share repurchases.
Shareholder Yield
Shareholder yield combines dividends, net buybacks, and net debt paydown to show total cash returned to owners.
Stock Split
A corporate action that increases the share count and proportionally lowers the price per share, leaving total value unchanged.
Reverse Stock Split
A corporate action that combines shares into fewer, higher-priced shares without changing the total value of a holding.
Spin-Off
A corporate action where a company separates a business unit into a new, independent public company whose shares go to existing shareholders.