Reading a stock sheet
A stock sheet holds dozens of numbers. Here is the essential: what they mean and why on their own they mislead.
Price, change, volume
Price says what one share costs today, not whether it is "expensive". A 5-euro share is not cheaper than a 500-euro one: it depends on how many shares exist and what the company is worth. A one-day change is noise unless compared with a longer period.
Volume shows how much is traded: low volume means buying or selling can move the price.
Market cap and multiples
Market cap is price × number of shares: the company's market value. Multiples relate it to the accounts.
P/E (price/earnings): what you pay for one euro of profit. P/B (price/book). EV/EBITDA, which includes debt. A high multiple may reflect expected growth or simply an expensive price; a low one may be a bargain or a struggling company. Compare within the same sector, never across sectors.
Profitability and soundness
Profit margin, ROE and ROA show how well the business earns. The current ratio (current assets over current liabilities) shows whether short-term debts can be met. Dividend yield is the dividend over price; a very high yield can signal a collapsing price.
52-week range and beta
The 52-week low and high show where the price sits in its yearly range. Beta measures sensitivity to the market: above 1 amplifies moves, below 1 dampens them.
In short
- Price alone does not say whether a stock is expensive.
- Multiples are compared within the same sector.
- A very high dividend yield may signal a problem.
- No single indicator is enough: read them together and over time.
Check your understanding
One stock costs 5 euros and another 500. Which is cheaper?
Show the answer: You cannot tell from price. What matters is the company's value and share count: compare multiples and market cap.
One company has a P/E of 40 and another 12. Is the second necessarily a bargain?
Show the answer: No. A low P/E may reflect weak growth or risks. Comparison only makes sense among similar companies and with other data.