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Net interest margin. Net interest margin ( NIM) is a measure of the difference between the interest income generated by banks or other financial institutions and the amount of interest paid out to their lenders (for example, deposits), relative to the amount of their (interest-earning) assets. It is similar to the gross margin (or gross profit ...
Relative change. In any quantitative science, the terms relative change and relative difference are used to compare two quantities while taking into account the "sizes" of the things being compared, i.e. dividing by a standard or reference or starting value. [1] The comparison is expressed as a ratio and is a unitless number.
To calculate the true economics of the loan, it is necessary to adjust the nominal cash flows to account for future inflation. Inflation-indexed bonds. The Fisher equation can be used in the analysis of bonds. The real return on a bond is roughly equivalent to the nominal interest rate minus the expected inflation rate.
The Graham formula proposes to calculate a company’s intrinsic value as: = the value expected from the growth formulas over the next 7 to 10 years. = the company’s last 12-month earnings per share. = P/E base for a no-growth company. = reasonably expected 7 to 10 Year Growth Rate of EPS. = the average yield of AAA corporate bonds in 1962 ...
Stock valuation is the method of calculating theoretical values of companies and their stocks.The main use of these methods is to predict future market prices, or more generally, potential market prices, and thus to profit from price movement – stocks that are judged undervalued (with respect to their theoretical value) are bought, while stocks that are judged overvalued are sold, in the ...
Pythagorean expectation. Pythagorean expectation is a sports analytics formula devised by Bill James to estimate the percentage of games a baseball team "should" have won based on the number of runs they scored and allowed. Comparing a team's actual and Pythagorean winning percentage can be used to make predictions and evaluate which teams are ...
Net interest spread refers to the difference in borrowing and lending rates of financial institutions (such as banks) in nominal terms. It is considered analogous to the gross margin of non-financial companies. Net interest spread is expressed as interest yield on earning assets (any asset, such as a loan, that generates interest income) minus ...
In statistics, the 68–95–99.7 rule, also known as the empirical rule, and sometimes abbreviated 3ss, is a shorthand used to remember the percentage of values that lie within an interval estimate in a normal distribution: 68%, 95%, and 99.7% of the values lie within one, two, and three standard deviations of the mean, respectively.