Invesco PHLX Semiconductor ETF (SOXQ)

Market capitalization (Market Cap) represents the total value of a company's outstanding shares of stock. It is a quick way to measure the size and market value of a company.

Why is it important? Market Cap helps investors categorize companies into different sizes (e.g., small-cap, mid-cap, large-cap), which often correlates with growth potential and risk.

How it's calculated Market Cap = Current Stock Price x Total Outstanding Shares (Shares in existence)

Revenue is the total amount of money a company earns from its business operations, including sales of goods or services.

Why is it important? Revenue shows the scale of a company's operations and serves as a baseline for evaluating profitability, growth, and efficiency.

The price-to-earnings ratio (P/E ratio) is a valuation metric that compares a company's current share price to its earnings per share (EPS). It is a simple and widely used indicator of a stock's relative value.

Why is it important? The P/E ratio helps investors assess whether a stock is overvalued or undervalued compared to its peers or the market as a whole.

The Price-to-Book (P/B) ratio compares a company's market price to its book value (total assets minus total liabilities) per share.

Why is it important? This metric helps identify undervalued (3 or under) or overvalued (over 5) companies based on their balance sheet assets.

How it's calculated P/B Ratio = Current Stock Price ÷ Book Value Per Share

The Debt-to-Equity (D/E) ratio measures a company's financial leverage by comparing its total debt to shareholder equity.

Why is it important? It indicates how much of the company's operations are funded by debt versus equity, which can reveal financial stability (under 1x) or risk (over 2x).

How it's calculated D/E Ratio = Total Liabilities ÷ Shareholder Equity

Dividend Yield is the annual dividend payment a company offers as a percentage of its current stock price.

Why is it important? It helps investors assess the income-generating potential of a stock relative to its price.

How it's calculated Dividend Yield = (Annual Dividends Per Share ÷ Current Stock Price) x 100

The Price-to-Earnings-to-Growth (PEG) ratio compares a stock's P/E ratio with its expected earnings growth rate.

Why is it important? It helps investors identify stocks that are undervalued or overvalued based on their growth potential.

How it's calculated PEG Ratio = P/E Ratio ÷ Earnings Growth Rate

Net Income is the profit a company retains after all expenses, taxes, and costs are deducted from total revenue.

Why is it important? It is the primary measure of a company's profitability and is often used to calculate other financial metrics.

How it's calculated Net Income = Total Revenue - Total Expenses

Net Profit Margin represents the percentage of revenue left as profit after accounting for all expenses, taxes, and costs.

Why is it important? It reflects a company's ability to convert revenue into profit, indicating operational efficiency and profitability.

How it's calculated Net Profit Margin = (Net Profit ÷ Revenue) x 100

Beta measures how volatile is the share price of a company compared to the overall market. A beta of 1 indicates equal volatility to the market, greater than 1 means higher volatility, and less than 1 means lower volatility.

Gross Margin represents the percentage of revenue left after accounting for the cost of goods sold (COGS).

Why is it important? It indicates how efficiently a company produces its goods or services.

How it's calculated Gross Margin = [(Revenue - COGS) ÷ Revenue] x 100

This margin compares a company's revenue to its total sales, highlighting efficiency in generating revenue.

Why is it important? It provides insight into how well a company converts sales into revenue.

How it's calculated Revenue to Sale Margin = Revenue ÷ Total Sales

The 52-week low represents the lowest price at which a stock has traded in the past year.

Why is it important? It shows the stock's lower bound over a year, helping investors identify buying opportunities during dips.

The 52-week high is the highest price at which a stock has traded in the past year.

Why is it important? It indicates the peak performance of a stock, useful for assessing growth potential or overvaluation.