This chapter serves as a quick-reference resource for investors using Investi. It brings together many of the key concepts, ratios, indicators, and formulas covered throughout this guide and provides a convenient reference point when conducting investment research.
While the previous chapters focused on explaining concepts in detail, this section is designed to help investors quickly refresh their understanding of commonly used financial terms and analytical tools.
Quick Definitions
Asset
A resource owned by a company that is expected to provide future economic benefits.
Liability
A financial obligation owed by a company to another party.
Equity
The residual value of a company after liabilities have been deducted from assets.
Market Capitalisation
The total market value of a company’s outstanding shares.
Dividend
A distribution of profits paid by a company to its shareholders.
Bond
A debt security through which investors lend money to an issuer in exchange for interest payments and repayment of principal at maturity.
Yield
The return generated by an investment, usually expressed as a percentage.
Earnings Per Share (EPS)
A measure of company profitability attributable to each share.
Liquidity
The ability to buy or sell a security quickly without significantly affecting its price.
Volatility
The degree to which the price of a security fluctuates over time.
Valuation Ratio Cheat Sheet
| Ratio | Purpose |
|---|---|
| P/E Ratio | Compare share price to earnings |
| Forward P/E | Compare share price to expected earnings |
| PEG Ratio | Adjusts valuation for growth expectations |
| Price-to-Book (P/B) | Compare market value to book value |
| EV/EBITDA | Compare enterprise value to operating performance |
| Dividend Yield | Measures income generated relative to share price |
Key Formulas
Profitability Ratio Cheat Sheet
| Ratio | Purpose |
|---|---|
| ROE | Measures return generated from shareholder equity |
| ROA | Measures of profit generated from company assets |
| ROCE | Measures efficiency of capital utilization |
| Gross Margin | Measures profitability after direct costs |
| Operating Margin | Measures profitability from core operations |
| Net Margin | Measures overall profitability |
Key Formulas
Financial Health Ratio Cheat Sheet
| Ratio | Purpose |
|---|---|
| Debt-to-Equity | Measures financial leverage |
| Current Ratio | Measures short-term liquidity |
| Quick Ratio | Measures immediate liquidity |
| Interest Coverage | Measure’s ability to service debt |
Key Formulas
Technical Indicator Cheat Sheet
| Indicator | Purpose |
|---|---|
| Moving Average | Identify trend direction |
| RSI | Measures momentum and potential overbought/oversold conditions |
| MACD | Measures trend strength and momentum |
| Stochastic Oscillator | Measures price position relative to recent trading range |
| Volume | Measures of market participation |
| Relative Volume | Compares current volume to historical averages |
Common RSI Interpretation
| RSI Level | Interpretation | |
|---|---|---|
| Above 70 | Potentially Overbought | |
| 30 – 70 | Neutral | |
| Below 30 | Potentially Oversold | |
Chart Pattern Cheat Sheet
| Pattern | Typical Interpretation |
|---|---|
| Double Top | Potential bearish reversal |
| Double Bottom | Potential bullish reversal |
| Head and Shoulders | Potential trend reversal |
| Inverse Head and Shoulders | Potential bullish reversal |
| Ascending Triangle | Potential bullish continuation |
| Descending Triangle | Potential bearish continuation |
| Flag | Potential trend continuation |
| Pennant | Potential trend continuation |
Fixed-Income Reference
| Term | Description |
|---|---|
| Coupon Rate | Annual interest payment as a percentage of face value |
| Yield | Return based on current market price |
| Yield to Maturity (YTM) | Expected return if held until maturity |
| Face Value | Amount repaid at maturity |
| Maturity Date | Date principal is repaid |
Key Formula
Additional Resources
Investors may find the following resources useful for further learning and research:
- Company Financial Statements
- Annual Reports
- Market Announcements
- Malta Stock Exchange Publications
- Central Bank Publications
- Economic Reports and Statistics
- Investi Learning Hub Guides
- Investi Screening Tools
- Investi Market Data Pages
Final Thoughts
Understanding financial markets is an ongoing process. The concepts, metrics, and analytical techniques covered throughout this guide provide a foundation for evaluating investment opportunities and conducting structured research.
Whether analyzing equities, bonds, financial statements, valuation metrics, or technical indicators, investors should seek to combine multiple sources of information and maintain a disciplined approach to decision-making.
This guide is intended to support that process by providing practical educational resources and reference materials that can be revisited as knowledge and experience develop.
Key Takeaways
- Financial analysis involves combining multiple metrics and perspectives.
- Ratios and indicators are most useful when interpreted within context.
- Technical and fundamental analysis provide complementary insights.
- Screening, comparison, and monitoring are essential parts of the research process.
- Continuous learning and disciplined analysis are important components of successful investing.