Making Marketing Plan - Essay Example

TTM – means trailing twelve months  It is explained as “ a moving measurement (for example, an average or a sum) over the 12 previous months, using the most recent data available.” (FD)

PEG –  (FFD) explains how to get the PEG ratio as follows:

Price/Earnings To Growth, is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company's expected future growth.

A lower ratio is "better" (cheaper) and a higher ratio is "worse" (expensive). A PEG ratio that gets close to 2 or higher is generally believed to be expensive, that is, the price paid appears to be too high relative to the estimated future growth in earnings.

EBITDA – earnings before interest, taxes, depreciation and amortization

EBITDA is a formula used to evaluate a company's profitability. FD provides a formula of computation

EBITDA = Operating Revenue – Operating Expenses + Other Revenue

Its name comes from the fact that Operating Expenses do not include interest, taxes, depreciation or amortization. EBITDA is not a defined measure according to Generally Accepted Accounting Principles (GAAP), and thus can be calculated however a company wishes. It is also not a measure of cash flow.  (FFD)

P/E  - Price-earnings ratio is “the multiple of earnings at which a stock sells”. It is calculated “by dividing current stock price by current earnings per share  (adjusted for stock splits)”. (FD) The P/E ratio measures the amount that investors pay for a dollar of current earnings

EPS – earnings per share is “determined by dividing earnings for past 12 months by the number of common shares outstanding. (FD)

The Free Dictionary by Farflex.  “TTM”.  18 Oct. 2008 <http.//encyclopedia.thefreedictionary.com/TTM