Glossary

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E

earnings before interest and taxes

EBIT, (abbreviation for Earnings Before Interest and Taxes) is a company’s absolute ratio of profit. It is calculated from the annual profit before tax and net interest and before exceptional items. By eliminating these named factors, a comparable statement is received on the actual operative earning power of a company and is independent of the individual capital structure. When using the annual profit or the net profit, namely companies with a higher equity ratio based on lower borrowing costs tend to perform better. EBIT forms the basis for the EBIT Margin comparison ratio, which sets the EBIT in relation to profit.

Earnings Before Interest, Taxes, Depreciation and Amortization

EBITDA (abbreviation for Earnings Before Interest, Taxes, Depreciation and Amortization) is a company’s absolute ratio of profit. It comprises the annual profit before tax, interest and amortization of a company. EBITDA is an internationally distributed and one of the most significant success ratios in assessing the operative earning power of a company. Since the companies enter in the balance sheet under different legislations, internationally viewed, the EBITDA ratio enables the operative earning power building on the EBIT-significant comparisons as received through the accounted annual profit. For example, companies, which like investing, have high profit-reducing amortizations and consequently have a lower annual profit than companies, which invest less. As a result, EBITDA has a certain validating character. The EBIT Margin ratio is suitable in order to use EBITDA sensibly in a comparison of companies.

EBIT

EBIT, (abbreviation for Earnings Before Interest and Taxes) is a company’s absolute ratio of profit. It is calculated from the annual profit before tax and net interest and before exceptional items. By eliminating these named factors, a comparable statement is received on the actual operative earning power of a company and is independent of the individual capital structure. When using the annual profit or the net profit, namely companies with a higher equity ratio based on lower borrowing costs tend to perform better. EBIT forms the basis for the EBIT Margin comparison ratio, which sets the EBIT in relation to profit.

EBIT MARGIN

Also: EBIT Operating Margin. EBIT Margin is an operative company ratio. It is calculated from the relation of the EBIT to the profit. It is predestined as a relative ratio in order to compare the EBIT earning power of different companies with each other.

EBITDA

EBITDA (abbreviation for Earnings Before Interest, Taxes, Depreciation and Amortization) is a company’s absolute ratio of profit. It comprises the annual profit before tax, interest and amortization of a company. EBITDA is an internationally distributed and one of the most significant success ratios in assessing the operative earning power of a company. Since the companies enter in the balance sheet under different legislations, internationally viewed, the EBITDA ratio enables the operative earning power building on the EBIT-significant comparisons as received through the accounted annual profit. For example, companies, which like investing, have high profit-reducing amortizations and consequently have a lower annual profit than companies, which invest less. As a result, EBITDA has a certain validating character. The EBIT Margin ratio is suitable in order to use EBITDA sensibly in a comparison of companies.

EBITDA-MARGE

Also: EBITDA Operating Margin. EBITDA Margin is an operative company ratio. It is calculated from the relation of the EBITDA to the turnover. It is predestined as a relative ratio in order to compare the EBITDA earning power of different companies with each other.

Electronic Stock Exchange

A stock exchange where trade is carried out using a fully computerised system.

Electronic Trading System

A trading system where the stock transactions are conducted using a computer system.

End-of-day Valuation Rate

The rate set by the stock exchange at the end of each trading day base don the prices paid during the last trading minutes, which serves to calculate the change in value of the open position compared to the previous day at the stock exchange.

End-of-day Value

The rate set by the stock exchange at the end of each trading day base don the prices paid during the last trading minutes, which serves to calculate the change in value of the open position compared to the previous day at the stock exchange.

Equity

The funds, which are raised by the shareholder of a company to finance the company or which remain as earned profits in the company. The book equity in the balance sheet is made up of the difference between the asset items (assets, accruals, financial support) and the obligations (reserves and deferred income).

Equity Ratio

The equity ratio is the share of equity in the total assets in percent.

Equity Rentabiity

Equity rentability shows how a company’s invested equity has paid interest on the earned profit.

Equity Return

The equity return gives information on the interest calculation of a company’s equity. For the calculation, the annual profit is divided by the used capital. Example: with an equity of one million Euros and an annual profit of €80,000, the equity return amounts to eight percent.

Estimate Rate

G (Geld) [M (Money)]: At this price, there was demand for the share, however there were no offers of sale.
B (Brief) [L (Letter)]: Shares were offered at this price, there were no buyers.
b (bezahlt) [p (paid)]: supply and demand were equal. Synonymous to no price supplement.
exD (ohne Dividende) [WD (Without Dividends)]: Opening price after reduction of the dividend.
bB (bezahlt Brief) [PL (Paid Letter)]: All purchase orders were completed at this rate, however there was yet another offer.
bG (bezahlt Geld) [PM (Paid Money)]: All purchase orders were completed at this rate, however there was yet another demand.
T (Taxkurs) [E (Estimated Rate)]: A price could not be set and so was estimated.

European Option

An option, which can only be exercised at a certain point of time, generally on the day of expiry.

Ex-Pit Transaction

A deal, which is concluded outside the ring yet which is conducted via the stock exchange’s clearing system.

Exercise Limit

Maximum number of option agreements of the same class, which a market participant may exercise within a set period.

Exercise Price

The price at which the basic security can be bought or sold when exercising the option.

Expiry

The point of time when an option expires.

Expiry Cycle

A series of four calendar months, which can be considered for options as expiry months. The expiry cycle of the DTB [German Futures Market] share options consists of the four end-of-quarter months (March, June, September, December).

Expiry Date

A date after which an option can no longer be exercised. This is also the date when the option to exercise a short position is drawn.

Expiry Month

The month in which an option series expires.

Current share price

 

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