| [ Security code ] | |||||
| Four-digit number designated by the Securities Identification Code Committee
to a company whose shares are listed on the JASDAQ market or on a stock exchange.
Also known as the stock code. |
|||||
| [ Share price ] | |||||
| The price of a share being transacted on a stock market, such as the JASDAQ
market. Share prices listed on this website are 20 minutes delayed. |
|||||
| [ Number of shares outstanding ] | |||||
| Of the total number of shares a company may issue under the stipulations
of its articles of association, the number of shares already issued and in circulation
in the markets, excluding the number of shares cancelled. |
|||||
| [ Market capitalization ] | |||||
The market capitalization of a company represents its market value in monetary terms. For example, of two companies with the same number of shares outstanding, the one with a higher share price naturally carries a higher market capitalization than the other, reflecting the difference in enterprise value in the market. An historical review of market capitalization across the stock market, and that of the rankings by sector as well as by company, etc, indicates changes in the industrial structure and the vicissitudes of the corporate world. Fluctuation of market capitalization indicates changes in popularity among markets, sectors and companies. |
|||||
| [ Ratio of current profit to sales ] | |||||
Current profit is profit reflecting non-operating income on top of operating profit, which represents profit from operating activities plus financial activities, excluding extraordinary profits and losses such as capital gain on disposal of land. Reviewing how much current profit is generated from the amount of sales will tell you how profitable a company is in its activities, excluding extraordinary profits and losses. The ratio of current profit to sales, wherein a higher ratio is defined as optimal, is regarded as one of the most important criteria in evaluating corporate profitability. |
|||||
| [ Ratio of current net profit to sales ] | |||||
Current net profit is the final profit, reflecting corporate income tax on top of current profit or profit before tax, taking into account all extraordinary profits and losses. The ratio of current net profit to sales indicates how much profit is generated out of sales. This ratio is one of the most important criteria for shareholders, with a high ratio being valued. |
|||||
| [ Price-earnings ratio (PER) ] | |||||
Predictable current net profit per share is the estimated current net profit divided by the number of shares outstanding. Share price divided by this value will tell you the price at which shares are transacted, in number of times the profit per share. PER stands for price-earnings ratio, and the higher this ratio, the higher the market expectation of the company's future profitability and growth potential. The reverse is also true. It should be noted, however, that this criterion reflects expectation, and thus involves a disparity from the actual value. Alternatively, by calculating the PER for the entire JASDAQ stock market, the level of expectation towards the JASDAQ market itself can be measured. But we suggest that PER should serve primarily as a criterion for evaluating the growth potential of each company. |
|||||
| [ Price book-value ratio (PBR) ] | |||||
PBR stands for price book-value ratio. Shareholders' equity per share is the shareholder's equity (also called net worth or owned capital) divided by the number of shares outstanding. Share price, when divided by such value, will indicate the level of share price given by the market, in number of times the shareholders' equity in accounting terms. It should be noted, however, that the value of shareholders' equity is an accounting criterion, and may not be appropriate as a measure for short-term evaluation of a company, such as fluctuation of its share price. Accordingly, this criterion alone is insufficient as a measurement for investment viability. Theoretically, this criterion should not fall below 1.0, since an important prerequisite is that there is and there will be no unrealized loss. |
|||||
| [ Earnings per share (EPS) ] | |||||
EPS stands for earnings per share and indicates how much final profit is generated per share. Though useful in evaluating the investment value of a company in comparison with its share price, it can fluctuate in the event of a share split. Incidentally, "average number of shares outstanding" refers to the mean of the average number of shares at the beginning of the relevant fiscal year and that at the end of the fiscal year. |
|||||
| [ Shareholder's equity per share ] | |||||
This is also called net worth per share, indicating how much net worth a company retains per share. |
|||||
| [ Profit and loss statement ] | |||||
| This refers to one of the financial statements to be published by a company.
This is a table containing all items of income and expense within an accounting
period to attain a profit (or loss), and showing the corporate performance for
the period. Values in the profit and loss statement represent accrued earnings
(or losses) for an accounting period. In short, the profit and loss statement will give you an idea of how much money a company makes within a certain period of time. Companies generally employ a vertical reporting format for this, with sales shown at the top, and running down to the bottom line profit after gains and losses on disposal. |
|||||
| [ Balance sheet ] | |||||
| This is also one of the financial statements published by a company. It is
a table describing the status of assets, liabilities and capital at the end of
a fiscal year and book closing, to indicate the financial standing of the company.
A balance sheet indicates values of each item of account as at the closing date,
thus does not show cumulative values. In the presentation of balance sheets, "account
form" (of balance sheets) is typically employed, where assets are listed as credits
on the lefthand side and liabilities and capital are recorded as debits on the
righthand side. |
|||||
| [ Nikkei JASDAQ stock average ] | |||||
| This refers to the index resulting from computing the simple mean value of
the share prices of all companies (*) listed on JASDAQ market. This index has been being published since November 1983 and has established itself as a vital indicator of the JASDAQ market trend. The Nikkei JASDAQ stock average, which covers the JASDAQ market - targeting stocks of many small and medium corporations - often serves as the indicator of general market trends. * Excluding the Bank of Japan and stocks under the management of the stock exchange. |
|||||
| [ JASDAQ INDEX ] | |||||
| This index shows the fluctuation of the market capitalization of almost all
companies (*) listed on the JASDAQ market, as compared to the market capitalization
at the benchmark date. It indicates the change in the number of companies listed, their capital increase, status of public offering, etc., showing how much money is flowing into the JASDAQ market, as compared to the benchmark date. * Excluding the Bank of Japan and stocks under the management of the stock exchange. |
|||||
| [ Cash flow ] | |||||
| This refers to the flow of money incoming and outgoing within a company's
activities. Cash flow comprises three different categories: operating cash flow (indicating how much cash is generated out of the company's operations on a consolidated basis), financial cash flow (a cash flow as respects the raising of external finance such as borrowing and debt issue, as well as their repayment and redemption), and investment cash flow (cash flow as respects capital expenditure, purchase and disposal of securities, lending and collection). By tracing these cash flows, you can determine whether a company is appropriately inputting cash into its operation, whether it is effectively utilizing the input cash and whether it is generating the level of profit that justifies the input. For evaluating share prices in particular, cash flow per share is used as a criterion. |
|