Financial formulas, ready to use

Time value of money

Compounding, discounting, loans and the growth of money over time.

• Future valueFreeWhat a lump sum plus regular contributions grows to.
• Present valueAnalystWhat a future amount is worth in today’s money.
• Loan and mortgage paymentFreeRegular payment, total interest and a yearly amortization schedule.
• Compound annual growth rate (CAGR)FreeThe steady yearly rate that turns a starting value into an ending value.
• Effective annual rateAnalystThe true yearly rate once compounding is included.
• Real return after inflationAnalystYour return in purchasing power, not just in money.
• Doubling time (rule of 72)AnalystHow long money takes to double at a given rate.

Stock valuation

Put a value on a share using dividends, cash flows or multiples.

• Dividend discount model (constant growth)FreeValue a steady dividend payer from its dividend, growth and your required return.
• Dividend discount model (two-stage)AnalystFast dividend growth for a few years, then a stable long-term rate.
• Discounted cash flow (DCF)AnalystValue a business from its future free cash flow.
• Value from a P/E multipleAnalystA quick value from earnings per share and a multiple you choose.
• Graham numberAnalystBenjamin Graham’s upper price limit for a defensive investor.
• Graham growth formulaAnalystGraham’s revised formula using expected growth and bond yields.
• PEG ratioAnalystP/E adjusted for how fast earnings are growing.
• Enterprise value and EV/EBITDAAnalystCompany value including debt, compared with operating earnings.

Dividends

Yield, income and the long-run effect of reinvesting.

• Dividend income projectionFreeHow contributions, dividend growth and reinvesting build yearly income.
• Dividend yield and yield on costAnalystCurrent yield versus the yield on what you originally paid.
• Dividend payout and coverageAnalystHow much of earnings and cash flow goes to dividends.
• Sustainable growth rateAnalystHow fast dividends can grow from reinvested earnings alone.

Returns and risk

Measure performance and how much risk it took to get there.

• Total return on an investmentAnalystGain including dividends, with an annualized figure.
• CAPM expected returnAnalystRequired return on a stock from its beta.
• Sharpe and Sortino ratioAnalystReturn earned per unit of risk.
• Return statistics from a seriesAnalystPaste periodic returns to get average, volatility and max drawdown.
• Two-asset portfolio risk and returnAnalystHow combining two assets changes risk.

Bonds

Price, yield and interest-rate sensitivity of fixed income.

• Bond price and durationAnalystPrice a bond from its yield, with duration.
• Yield to maturityAnalystThe return you earn holding a bond to maturity at today’s price.

Options and futures

Theoretical prices for common derivatives.

• Black-Scholes option priceAnalystTheoretical European call and put prices, with delta.
• Futures fair price (cost of carry)AnalystTheoretical futures price from spot, rates and carry.

Corporate finance

Investment decisions, cost of capital and break-even.

• NPV, IRR and paybackFreeEvaluate a project from its cash flows.
• Weighted average cost of capital (WACC)AnalystThe blended return a company must earn for its investors.
• Break-even pointAnalystUnits and revenue needed to cover all costs.
• DuPont analysisAnalystBreak return on equity into margin, efficiency and leverage.

Financial ratios

Read a company’s statements: liquidity, leverage, profitability, efficiency.

• Liquidity ratiosAnalystCurrent, quick and cash ratios.
• Leverage and solvency ratiosAnalystDebt to equity, debt ratio and interest coverage.
• Profitability ratiosAnalystMargins plus return on assets and invested capital.
• Efficiency and cash conversion cycleAnalystHow fast a company turns inventory and receivables into cash.
• Market value ratiosFreeP/E, P/B, P/S and earnings yield.

Full models

Complete, multi-step models that run online and save to your account.

• Full DCF with scenariosFund ManagerA complete discounted cash flow model with bull, base and bear cases.
• Three-stage dividend discount modelFund ManagerHigh growth, a gradual slowdown, then a stable rate.
• Comparable companiesFund ManagerValue a company against a peer group of your choice.
• Dividend portfolio trackerFund ManagerTrack holdings, yield and your monthly income calendar.
• Retirement and income plannerFund ManagerHow much you need, and when your income covers your expenses.
• Stock comparison with live dataPartnerType tickers and compare valuation, dividends and ratios side by side.