EV/GP

EV / gross profit

One of the 61 measures in Stock Scorer, under Valuation — What does the price ask for what the company earns, owns and pays out?

How it is worked out

Enterprise value ÷ gross profit

Price against profit before any overhead, so it forgives the sales, marketing and research spending a growing company chooses to do. That makes it kind to growth spenders by design.

How to read it

the multiple for a company whose operating profit is held down by spending it chooses to do. It forgives every cost below the gross line, which is most of them, so it flatters growth spenders on purpose

Which figures it needs

Computed from 8 figures taken from the filing:

• gross_profit
• cost_of_revenue
• debt_long
• debt_short
• finance_lease_long
• finance_lease_short
• cash
• short_term_investments

The XBRL tags behind it

These are the element names looked for in a filing, in order. The first one a company reports is the one used, and the company page names which it was — so any figure here can be checked against the filing it came from.

• GrossProfit
• CostOfRevenue
• CostOfGoodsAndServicesSold
• CostOfSales
• CostOfGoodsAndServiceExcludingDepreciationDepletionAndAmortization
• LongTermDebtAndCapitalLeaseObligations
• LongTermDebtNoncurrent
• LongTermDebt
• NotesPayableNoncurrent
• LongTermDebtAndCapitalLeaseObligationsCurrent
• LongTermDebtCurrent
• DebtCurrent
• ShortTermBorrowings
• NotesPayableCurrent
• FinanceLeaseLiabilityNoncurrent
• FinanceLeaseLiabilityCurrent
• CashAndCashEquivalentsAtCarryingValue
• CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
• CashAndCashEquivalents
• ShortTermInvestments
• AvailableForSaleSecuritiesDebtSecuritiesCurrent
• MarketableSecuritiesCurrent
• OtherShortTermInvestments
• OtherCurrentFinancialAssets

Whether it counts

This measure is not counted by default. It can be added to Valuation on the dashboard, and it then takes its share of that dimension.