What every number means
Plain-English map of the figures you will see on a stock page. · 8 min
Price is not value
The share price is the last agreed trade. It is not a grade. Two companies can have the same price and wildly different businesses.
Value is what you think the business is worth as an owner. Price is what the market is asking today.
Size first
Market cap is share price times shares outstanding. It is the sticker price for the whole equity.
Enterprise value adds net debt. Use it when you compare companies with different cash and debt piles.
The scoreboard
Revenue is sales. Gross profit is sales minus the direct cost of those sales. Operating income is profit from the core business after operating costs.
Net income is what is left after interest and tax. EPS is net income divided by shares. If shares rise, EPS can fall even if the business did fine.
Multiples are shorthand
P/E asks how many years of current earnings the market is paying for. P/S does the same with sales. They are not magic. They only help after you understand the business.