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27 Definitions...used in IPO Financial Analysis
Valuation
% offered in IPO Expected IPO proceeds divided by market value
Annualized Earnings(loss) Quarterly earnings (loss) multiplied by four
Annualized Sales Quarterly sales multiplied by four. Not used for seasonal businesses
Market value Price per share times number of shares issued & outstanding
Price-to-Book Value Market value divided by Book Value
Price-to-Earnings (loss) Market value divided by Annualized Earnings (loss)
Price-to-Sales Market value divided by Annualized Sales
Price-to-Tangible Bk Value Market value divided by Tangible Book Value
Selling Shareholders Pre-IPO investors who use the IPO to sell their stock
Use of Proceeds Usually for working capital, debt repayment, or selling shareholders

Profit/Loss Income Statement
Amortization Non-cash (income statement) charge, applies to 'Goodwill'
Cost of GoodsSold(COGS) Direct cost of goods, not including adv, sales, marketing, etc.
Depreciation Non-cash charge reducing an asset's value: a building 'depreciates'
Equity Charges Non-cash compensation charges, usually related to stock options
Excluded charges Usually equity compensation, amortization, sometimes depreciation
Gross Margin Sales minus Cost of Goods Sold (COGS)
Gross Margin % Gross Margin divided by Sales
Income Statement Sales & expenses over a specified time, similar to a tax return
Profit % Profit divided by Sales

Balance Sheet
Balance Sheet A snapshot on a particular day of assets & liabilities
Book Value Shareholder's Equity on the balance sheet
Current Assets Assets which can be converted to cash within 12 months
Current Liabilities Liabilities which are due and payable within the next 12 months
Goodwill Price paid (in acquiring a business) over Tangible Book Value
Shareholders Equity Total assets less all liabilities (current + long term)
Tangible Book Value Book Value less 'goodwill asset accounts' on the balance sheet
Working Capital Current assets less current liabilities

Alphabetical Listing
% offered in IPO Expected IPO proceeds divided by IPO market value
Amortization Non-cash (income statement) charge, applies to 'Goodwill'
Annualized Earnings(loss) Quarterly earnings (loss) multiplied by four
Annualized Sales Quarterly sales multiplied by four. Not used for seasonal businesses
Balance Sheet A snapshot on a particular day of assets & liabilities
Book Value Shareholder's Equity on the balance sheet
Cost of GoodsSold(COGS) Direct cost of goods, not including adv, sales, marketing, etc.
Current Assets Assets which can be converted to cash within 12 months
Current Liabilities Liabilities which are due and payable within the next 12 months
Depreciation Non-cash charge reducing an asset's value: a building 'depreciates'
Equity Charges Non-cash compensation charges, usually related to stock options
Excluded charges Usually equity compensation, amortization, sometimes depreciation
Goodwill Price paid (in acquiring a business) over Tangible Book Value
Gross Margin Sales minus Cost of Goods Sold (COGS)
Gross Margin % Gross Margin divided by Sales
Income Statement Sales & expenses over a specified time, similar to a tax return
Market value Price per share times number of shares issued & outstanding
Price-to-Book Value Market value divided by Book Value
Price-to-Earnings (loss) Market value divided by Annualized Earnings (loss)
Price-to-Sales Market value divided by Annualized Sales
Price-to-Tangible Bk Value Market value divided by Tangible Book Value
Profit % Profit divided by Sales
Selling Shareholders Pre-IPO investors who use the IPO to sell their stock
Shareholders Equity Total assets less all liabilities (current + long term)
Tangible Book Value Book Value less 'goodwill asset accounts' on the balance sheet
Use of Proceeds Usually for working capital, debt repayment, or selling shareholders
Working Capital Current assets less current liabilities