Guide To Excel For Finance: Ratios
AAA
  1. Guide To Excel For Finance: Introduction
  2. Guide To Excel For Finance: Goal Seek
  3. Guide To Excel For Finance: PV And FV Functions
  4. Guide To Excel For Finance: HLookup And VLookup
  5. Guide To Excel For Finance: Linking Yahoo! Finance and Other Outside Financial Data To Excel
  6. Guide To Excel For Finance: Ratios
  7. Guide To Excel For Finance: Technical Indicators
  8. Guide To Excel For Finance: Valuation Methods
  9. Guide To Excel For Finance: Advanced Calculations
  10. Guide To Excel For Finance: Conclusion

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 price-to-sales and price-to-book ratios for Textron, which are 0.61 and 2.36, respectively. It also provided enterprise-value-to-revenue as well as enterprise-value-to 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
12-Sep
12-Dec
12-Dec
13-Dec
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
At the current share price of $26.72 for Textron, the P/E ratio of 12.72 is calculated as follows in Excel:



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
12-Sep
12-Dec
12-Dec
13-Dec
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 price-to-sales 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:
30-Sep-12
Ex-Dividend Date:
12-Sep-12
Last Split Factor (new per old):
2:01
Last Split Date3:
27-Aug-07


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 EV-to-EBITDA ratio of 9.3, which agrees with what Yahoo! also calculated. Guide To Excel For Finance: Technical Indicators

  1. Guide To Excel For Finance: Introduction
  2. Guide To Excel For Finance: Goal Seek
  3. Guide To Excel For Finance: PV And FV Functions
  4. Guide To Excel For Finance: HLookup And VLookup
  5. Guide To Excel For Finance: Linking Yahoo! Finance and Other Outside Financial Data To Excel
  6. Guide To Excel For Finance: Ratios
  7. Guide To Excel For Finance: Technical Indicators
  8. Guide To Excel For Finance: Valuation Methods
  9. Guide To Excel For Finance: Advanced Calculations
  10. Guide To Excel For Finance: Conclusion
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