Glossary
Glossary
Definitions of frequently used terms in Japanese equity investing, with practical context.
BPS
fundamentalBook-value Per Share. Net assets divided by shares outstanding, representing the accounting book value attributable to each share
Dividend Payout Ratio
fundamentalThe proportion of net income paid out as dividends. Indicates the balance between shareholder returns and retained earnings for reinvestment
Dividend Yield
fundamentalDividends per share divided by share price. The income measure of how much annual cash flow a stock pays relative to its price
EPS
fundamentalEarnings Per Share. Net income divided by the weighted average number of shares outstanding, showing the profit attributable to each share
Equity Ratio
fundamentalThe share of total assets financed by equity. A fundamental measure of financial soundness - higher ratios indicate lower reliance on debt
Margin Trading
fundamentalTrading with borrowed funds or shares from a broker. Enables larger positions than cash allows but introduces margin-call risk and financing costs
Market Capitalization
fundamentalShare price multiplied by shares outstanding. The market's aggregate valuation of a company, used for size classification and index weighting
PBR
fundamentalPrice-to-Book Ratio. The share price divided by book value per share, used to gauge under- or overvaluation against book equity
PER
fundamentalPrice Earnings Ratio. The share price divided by earnings per share, indicating how many years of current earnings the market is paying for
ROE
fundamentalReturn on Equity. Net income divided by shareholders' equity, measuring how efficiently a company turns shareholder capital into profit