Guide To Excel For Finance: Ratios
Common ratios need at least two data points from outside financial sources. As can be seen from the above download, Yahoo! Finance automatically calculated the pricetosales and pricetobook ratios for Textron, which are 0.61 and 2.36, respectively. It also provided enterprisevaluetorevenue as well as enterprisevalueto EBITDA ratios.
Users may also want to manually calculate ratios to have a more customized experience. For instance, the specific ratio the user needs may not be calculated by Yahoo! Finance, or the user might want to use different time periods in the calculations. For instance, using the trailing twelve month data versus the last full fiscal year of information can help provide more current ratios to analyze. Below are other examples of specific ratios and how to calculate them.
P/E Ratio
Using the import from web feature under "Data" in Excel, the following analyst estimate data from Yahoo! was imported directly to Excel:
Earnings Est 
Current Qtr. 
Next Qtr. 
Current Year 
Next Year 
12Sep 
12Dec 
12Dec 
13Dec 

Avg. Estimate 
0.52 
0.6 
2.1 
2.34 
No. of Analysts 
14 
13 
14 
15 
Low Estimate 
0.46 
0.53 
1.98 
2.1 
High Estimate 
0.56 
0.67 
2.2 
2.6 
Year Ago EPS 
0.45 
0.49 
1.31 
2.1 
PEG Ratio
Under the "Analyst Estimates" portion of Textron's information in Yahoo! Finance, here is what we were able to download into Excel using the "From Web" feature
Growth Est 
TXT 
Industry 
Sector 
S&P 500 
Current Qtr. 
15.60% 
10.30% 
55.80% 
7.80% 
Next Qtr. 
22.40% 
35.10% 
26.10% 
18.40% 
This Year 
60.30% 
22.60% 
43.70% 
8.40% 
Next Year 
11.40% 
16.20% 
6.40% 
13.40% 
Past 5 Years (per annum) 
19.32% 
N/A 
N/A 
N/A 
Next 5 Years (per annum) 
31.23% 
15.97% 
16.72% 
10.04% 
Price/Earnings (avg. for comparison categories) 
12.41 
9.63 
12.57 
15.47 
PEG Ratio (avg. for comparison categories) 
0.4 
1.1 
1.96 
3.84 
As you can see, the PEG ratio is already provided, but can also be calculated by creating a formula in excel that divides the P/E ratio we calculated above by the projected growth rate of 31.23%. The final result is a PEG ratio of 0.40.
P/S Ratio
As with the PEG ratio, Yahoo! Finance provided the price to sales ratio above; but returning to the "Analyst Estimates" portion for Textron, below is the information we were able to download:
Revenue Est 
Current Qtr. 
Next Qtr. 
Current Year 
Next Year 
12Sep 
12Dec 
12Dec 
13Dec 

Avg. Estimate 
3.06B 
3.50B 
12.43B 
13.16B 
No. of Analysts 
11 
11 
12 
13 
Low Estimate 
3.01B 
3.30B 
12.15B 
12.70B 
High Estimate 
3.11B 
3.67B 
12.64B 
13.55B 
Year Ago Sales 
2.81B 
3.25B 
11.28B 
12.43B 
Sales Growth (year/est) 
8.80% 
7.40% 
10.30% 
5.80% 
Analysts project full year sales of $12.43 billion for Textron for all of 2012. Creating a cell that divides the current market capitalization of $7.51 billion (also provided in the previous page) by sales gets us to a pricetosales ratio of 0.61, which matches with what Yahoo! has provided.
Dividend Payout Ratio
Yahoo! provides dividend payout information under the "Key Statistics" portion for Textron. Below is output from the "Dividend & Split" data:
Dividends & Splits 

Forward Annual Dividend Rate4: 
0.08 
Forward Annual Dividend Yield4: 
0.30% 
Trailing Annual Dividend Yield: 
0.08 
Trailing Annual Dividend Yield: 
0.30% 
5 Year Average Dividend Yield: 
1.80% 
Payout Ratio: 
6.00% 
Dividend Date: 
30Sep12 
ExDividend Date: 
12Sep12 
Last Split Factor (new per old): 
2:01 
Last Split Date3: 
27Aug07 
Textron's current annual dividend payout is 8 cents per share. Creating a cell to divide this by the current share price of $26.72 leads to a current dividend rate of 0.30%. The payout ratio is 8 cents divided by last year's earnings level of $1.31 per share (provided above), which works out to 6.1%.
EV/EBITDA
Returning one last time to "Key Statistics" in Yahoo! Finance for Textron, the below income statement data was downloaded into Excel:
Income Statement 

Revenue (ttm): 
11.94B 
Revenue Per Share (ttm): 
42.73 
Qtrly Revenue Growth (yoy): 
10.70% 
Gross Profit (ttm): 
1.97B 
EBITDA (ttm): 
1.16B 
Net Income Avl to Common (ttm): 
412.00M 
Diluted EPS (ttm): 
1.39 
Qtrly Earnings Growth (yoy): 
91.10% 
Creating a cell that divides Enterprise Value (provided above) of $10.75 billion and dividing it by EBITDA of $1.16 billion results in an EVtoEBITDA ratio of 9.3, which agrees with what Yahoo! also calculated.
Guide To Excel For Finance: Technical Indicators

Price/Earnings To Growth  PEG Ratio
Price/Earnings to Growth (PEG) is a stock's price to earnings ... 
Dividend Payout Ratio
The percentage of earnings paid to shareholders in dividends. ... 
Payout Ratio
Payout ratio is the proportion of earnings paid out as dividends ... 
Combined Ratio
A measure of profitability used by an insurance company to indicate ... 
PriceToSales Ratio  PSR
A valuation ratio that compares a company’s stock price to its ... 
Ratio Analysis
A ratio analysis is a quantitative analysis of information contained ...

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