Company Analytics Definitions

FUNDAMENTAL DATA
Share price

Source: Finnhub Stock Price

Data item: Closing Price

As of date: Previous Market Close


52 week high and low

Source: Finnhub Stock Fundamentals

Data item: 52weekhigh and 52weeklow

As of date: Previous Market Close


P/E FY1

Source: Calculated using Finnhub Stock Price and Finnhub Stock Estimates

Calculation: Share price / FY1 EPS

As of date: Previous market closePrevious market close


Dividend yield

Source: Calculated using Finnhub Stock Fundamentals and Finnhub Stock Price

Calculation: DividendsPerShareTTM / Share price

As of date: Previous market close


VWAP share price

Source: Finnhub Stock Price

Calculation: Volume Weighted Average Price = Sum of (Daily Traded Volume x Daily Close Price) / Sum of Daily Traded Volume

The calculation uses 1 month, 3 month, 6 month or 12 month historic data depending on the option selected

As of date: Previous Market Close


Basic shares

Source: Financial Edge data

Data Item: Total Basic Shares Outstanding

This item includes all share classes.

As of date: Latest financial filing (10K or 10Q)


Dilution adjustment

Source: Calculated value using Financial Edge data

Calculation: Restricted Stock Units (RSUs) outstanding + Dilution from Stock Options*

Dilution from Stock Options = Number of stock options outstanding x (Latest Share Price – Exercise Price)/Latest Share Price

*Dilution from stock options is included only where the calculated value is positive.

Restricted stock and performance shares are excluded from the dilution adjustment but a link to these items has been provided.

As of date: Latest available data (10K or 10Q)


Fully diluted shares outstanding

Source: Calculated value

Calculation: Basic shares + Dilution adjustment

As of date: Latest financial filing (10K or 10Q)


Fully diluted market capitalization

Source: Calculated value

Calculation: (Each Company Share Class * Latest Share Price for that Share Class) + (Dilution Adjustment * Latest Share Price)

As of date: Number of Shares as per latest company filings (10K or 10Q) and Share Price is latest available closing share price


NCI

Source: Financial Edge data

Data item: Noncontrolling interest

Data is based on values reported on the face of the balance sheet

As of date: Latest financial filing (10K or 10Q)


Debt and equivalents

Source: Calculated value using Financial Edge data

Calculation: Short term debt + Current portion of long term debt + Long term debt

Data is based on values reported on the face of the balance sheet.

Capitalized operating leases under US GAAP are excluded from debt equivalents but a link to these items has been provided.

As of date: Latest financial filing (10K or 10Q)


Net Pension Liability

Source: Calculated value using Financial Edge data

Calculation: Pension plan obligation + Other plan obligation – Pension plan assets – Other plan assets – Pension liability tax shield

The Pension liability tax shield is calculated as: (Pension plan obligation – pension plan assets) x Corporate tax rate

As of date: Latest available data (10K or 10Q)


Investments

Source: Calculated value using Financial Edge data

Calculation: Current marketable securities + Short term investments + Non current marketable securities + Long term investments + Equity method investments

Data is based on values reported on the face of the balance sheet

As of date: Latest financial filing (10K or 10Q)


Cash

Source: Financial Edge Data

Data item: Cash and equivalents

Data is based on values reported on the face of the balance sheet

As of date: Latest financial filing (10K or 10Q)


Enterprise value

Source: Calculated value

Calculation: Fully diluted market capitalization + NCI + Debt and equivalents + Net pension liabilityInvestmentsCash

COMPARABLES
Comparable companies

Source: Financial Edge


EV / CY1 Revenue

Source: Financial Edge using Finnhub Stock Estimates

Calculation: Enterprise Value / [(1 – (Last FY End – Last Calendar Year End) / 365) * Revenue_FY1 + (Last FY End – Last Calendar Year End) / 365 * Revenue_FY2]

The calculation of CY1 Revenue reflects calendarization of FY1 and FY2 consensus Revenue forecasts to align with a fiscal year-end date of Dec 31.

As of date: Previous market close


EV / CY1 EBITDA

Source: Financial Edge using Finnhub Stock Estimates

Calculation: Enterprise Value / [(1 – (Last FY End – Last Calendar Year End) / 365) * EBITDA_FY1 + (Last FY End – Last Calendar Year End) / 365 * EBITDA_FY2]

The calculation of CY1 EBITDA reflects calendarization of FY1 and FY2 consensus EBITDA forecasts to align with a fiscal year-end date of Dec 31.

As of date: Previous market close


CY1 EBITDA Margin

Source: Financial Edge using Finnhub Stock Estimates

Calculation: CY1 EBITDA / CY1 Revenue

CY1 Revenue and CY1 EBITDA reflects calendarization of FY1 and FY2 consensus forecasts to align with a fiscal year-end date of Dec 31.

As of date: Previous market close


2 Year Revenue CAGR (Fwd)

Source: Financial Edge using Finnhub Stock Estimates

Calculation: (Revenue_FY2/Revenue_Actual)^(1/2) – 1

As of date: Previous market close


Total debt / LTM EBITDA

Source: Calculated value using Financial Edge data

Calculation: Debt and equivalents / EBITDA_LTM

As of date: Latest financial filing (10K or 10Q)


Debt / capital

Source: Calculated value

Calculation: Debt and equivalents / (Fully diluted market capitalization + NCI + Debt and equivalents + Net pension liability)


Leveraged beta

Source: Calculated using Finnhub Stock Fundamentals

Calculation: 5 Year Beta * 0.67 + 1 * 0.33

The calculation reflects the adjustment to the raw beta using the Blume method

As of date: Previous market close

EARNINGS
Revenue

Source: XigniteFactSetEstimates (Actual and LTM) Finnhub Stock Estimates (Estimates)

Actual Data item: SalesorRevenue_Actual

LTM Data items: Sum of data for last 4 quarters. Note that subsequent restatements of quarterly data are not reflected in this data at this time.

Estimate Data items: Revenue_FY1, Revenue_FY2, Revenue_FY3

As of date: Previous Market Close


Growth

Source: Calculated value

Calculation: Revenue_Period/Revenue_Prior Period

As of date: Previous Market Close


EBITDA

Source: XigniteFactSetEstimates (Actual and LTM) Finnhub Stock Estimates (Estimates)

Actual data item: EBITDA_Actual

LTM data item: Sum of data for last 4 quarters. Note that subsequent restatements of quarterly data are not reflected in this data at this time.

Estimate Data items: EBITDA_FY1, EBITDA_FY2, EBITDA_FY3

As of date: Previous Market Close


Margin

Source: Calculated value

Calculation: EBITDA / Revenue

As of date: Previous Market Close


EPS

Source: Finnhub Stock Estimates

Data items: EPS_CY1, EPS_CY2, EPS_CY3

As of date: Previous Market Close

COST OF CAPITAL
Government bond yield

Source: Federal Reserve Economic Data (FRED)

Data items:

10-year treasury constant maturity yield, 20-year treasury constant maturity yield

As of date: Previous Market Close


Historic ERP

Source: Financial Edge and Factset

Calculation: Arithmetic Average – calculated using arithmetic average annual returns on the S&P500 versus arithmetic average annual returns on US 10 year treasury bonds. Average returns are calculated on a 10 year, 20 year and 30 year historic basis.
Geometric Average – calculated using geometric average annual returns on the S&P500 versus geometric average annual returns on US 10 year treasury bonds. Average returns are calculated on a 10 year, 20 year and 30 year historic basis.

As of date: Previous month-end


Implied ERP

Source: Financial Edge and Factset

Calculation: A residual income model is used to calculate the US market cost of capital using:
-Stock market capitalization
-Book values of common equity
-Total consensus earnings, dividend and share buyback forecasts for FY1, FY2 and FY3.
-Terminal assumptions are based on the FY3 implied return on equity and US GDP growth rates

An Excel solver is used to identify the discount rate (i.e. market cost of equity) at which:
Stock market capitalization = Book values of common equity + Present value of residual income
Implied ERP = Market cost of equity – 10 Year Treasury Yield

The values in the formula above include all stocks with a market capitalization > $3bn, which are headquartered and traded on an exchange within the US.

As of date: Market values are based on previous month-end closing prices. Fundamental values use the latest annual financials available at the previous month-end. Estimates are based on the previous month-end published estimates.


Survey ERP

Source: Financial Edge

Calculation: Survey equity risk premium is based on our own survey of major global investment banks.

As of date: 31 Mar 2021


Company adjusted beta

Source: Calculated using Finnhub Stock Fundamentals

Calculation: 5 Year Beta * 0.67 + 1 * 0.33

The calculation reflects the adjustment to the raw beta using the Blume method

As of date: Previous market close


Industry adjusted beta

Source: Calculated value

Calculation: Industry unlevered beta * [1 + Industry debt / market capitalization * (1 – Corporate Tax Rate)]

Industry values are based on median values for peer companies listed in the comps table.

As of date: Previous market close


Est. cost of equity

Source: Calculated value

Calculation: Govt. bond yield + Adjusted Beta * Equity risk premium

The calculation reflects user options selected for government bond yields, equity risk premium, and adjusted beta.


Company unlevered beta

Source: Calculated value

Data item: Company adjusted beta / [1 + Debt / market capitalization * (1 – Corporate tax rate)]


Industry unlevered beta

Source: Calculated value

Calculation: Median {Company unlevered beta}

Median values are based on peer companies listed in the comps table.

As of date: Previous market close


Credit spread

Source: Financial Edge

Data item:

Credit spreads are selected based the company’s credit rating and industry. For companies where no credit rating data is available, a default credit rating of BBB has been used.

Credit spreads reflect average credit spreads for each credit rating and industry.

As of date: Previous month-end


Cost of debt

Source: Calculated value

Calculation: Government bond yield + credit spread


Credit rating

Source: Financial Edge and Moodys / S&P

As of date: 12months prior to latest month-end


Total debt / capitalization

Source: Calculated value

Calculation: Debt and equivalents / (Fully diluted market capitalization + Debt and equivalents + NCI)

This value is displayed where users select ‘company adjusted beta’.

As of date: Previous market close


Industry debt / capitalization

Source: Calculated value

Calculation: Median {Debt and equivalents / (Fully diluted market capitalization + Debt and equivalents + NCI)}

Median values are based on peer companies listed in the comps table.

This value is displayed where users select ‘industry adjusted beta’.

As of date: Previous market close


Total debt / market capitalization

Source: Calculated value

Calculation: Debt and equivalents / Fully diluted market capitalization

This value is displayed where users select ‘company adjusted beta’.

As of date: Previous market close


Industry debt / market capitalization

Source: Calculated value

Calculation: Median {Debt and equivalents / Fully diluted market capitalization}

Median values are based on peer companies listed in the comps table.

This value is displayed where users select ‘industry adjusted beta’.

As of date: Previous market close


WACC

Source: Calculated value

Calculation: Cost of equity * (1 – Debt / capitalization) + Cost of debt * Debt / capitalization * (1 – Corporate tax rate)

The calculation reflects user options selected for government bond yields, equity risk premium and adjusted beta

As of date: Previous market close

ECONOMIC DATA
Corporate tax rate

Source: Financial Edge

Data item: Marginal tax rate applicable in the United States


Historic real GDP growth rate

Source: Federal Reserve Economic Data (FRED)

Data items: Percent change of Gross Domestic Product (seasonally adjusted annual rate)

As of date: Prior day published value, updated quarterly


Forecast real GDP growth rate

Source: Federal Reserve Economic Data (FRED)

Data items: Percent change of FOMC Economic Projections for the Growth Rate of Real GDP for 2023, Median (not seasonally adjusted)

As of date: Prior day published value, updated annually


Historic inflation rate

Source: Federal Reserve Economic Data (FRED)

Data items: Chained Consumer Price Index growth rate (latest annual, not seasonally adjusted)

As of date: Prior day published value, updated monthly


Forecast inflation rate

Source: Federal Reserve Economic Data (FRED)

Data items: Percent change of FOMC Economic Projections for Personal Consumption Expenditures Inflation Rate for 2023, Median (not seasonally adjusted)

As of date: Prior day published value, updated annually


SOFR

Source: Federal Reserve Economic Data (FRED)

Data items: Secured overnight financing rate

As of date: Prior day published value, updated daily


US 3 month Treasury Yield

Source: Federal Reserve Economic Data (FRED)

Data items: Market yield on US treasury securities at 3-month constant maturity

As of date: Prior day published value, updated daily