Three angles complement the P/E. The puts financial debt in relation to equity. The shows the payout in relation to the price, the the share of profit that is paid out. And growth compares revenue and profit with the previous year.
Debt
Financial debt (loans, bonds) of €300m and equity of €500m give 300 ÷ 500 = 0.6. Debt amplifies good and bad years alike; if interest rates rise or profit falls, it becomes harder to carry. Banks and utilities usually work with more borrowed capital. The key figures bar in the chart only uses reported long-term financial debt – only compare values calculated the same way.
Dividend
Price €40, dividend €1 per share → dividend yield 1 ÷ 40 = 2.5%. With earnings of €2.50 per share, the payout ratio is 1 ÷ 2.50 = 40%. If it stays above 100% for long, the company pays out more than it earns. On the ex-date the dividend is deducted from the price – it is not a gift on top.
Growth
Revenue of €550m after €500m the year before: 50 ÷ 500 = +10%. A profit jump from €1m to €3m is +200% – that sounds big, but starts from a small base. The key figures bar in the chart shows revenue and profit compared with the previous year.