valuemetrics

README

value-metrics

The core equity value metrics used in fundamental stock analysis: price-to-earnings (P/E), price-to-book (P/B), and earnings yield. Pure, dependency-free Go math — the same engine behind the DeepValueRadar value-investing tools.

Install

go get github.com/theluckystrike/value-metrics

Quick example

package main

import (
	"fmt"

	valuemetrics "github.com/theluckystrike/value-metrics"
)

func main() {
	// $50 share, $2 EPS -> P/E of 25
	pe := valuemetrics.PriceToEarnings(50.0, 2.0)
	fmt.Println(pe)                              // 25
	fmt.Println(valuemetrics.PEVerdict(pe))      // "pricey"
	fmt.Println(valuemetrics.EarningsYieldFromPE(pe)) // 0.04 (4%)

	// P/B: price 50 vs 30 book/share
	fmt.Println(valuemetrics.PriceToBook(50.0, 30.0)) // ~1.667
}

API

Function	Description
PriceToEarnings(pricePerShare, eps float64) float64	Trailing P/E (0 if EPS <= 0).
EarningsPerShare(netIncome, sharesOutstanding float64) float64	Net income / shares outstanding.
PriceToBook(pricePerShare, bookValuePerShare float64) float64	P/B ratio (0 if book <= 0).
BookValuePerShare(commonEquity, sharesOutstanding float64) float64	Common equity / shares outstanding.
EarningsYield(eps, pricePerShare float64) float64	EPS / price — the reciprocal of P/E.
EarningsYieldFromPE(pe float64) float64	1 / P/E (0 if P/E <= 0).
PEVerdict(pe float64) string	undefined / deep-value / cheap / fair / pricey / expensive by modern S&P 500 P/E bands.

License

MIT.

Links

• DeepValueRadar value-investing tools: https://deepvalueradar.com/
• Package docs: https://pkg.go.dev/github.com/theluckystrike/value-metrics

Documentation

Overview

Package valuemetrics implements the core equity value metrics used in fundamental stock analysis: price-to-earnings (P/E), price-to-book (P/B), and earnings yield. These are the same formulas behind the DeepValueRadar value-investing tools at https://deepvalueradar.com/.

A multiple on its own is not a verdict. These numbers are screen inputs, and the rules that consume them there - how the universe is constructed, the valuation-gap trigger a candidate has to clear, and how conviction is scored afterwards - are written up at https://deepvalueradar.com/methodology/.

Quick example:

pe := valuemetrics.PriceToEarnings(50.0, 2.0)  // share price / EPS
// pe == 25.0
y := valuemetrics.EarningsYield(25.0)          // 1 / P/E
// y ~= 0.04 (4%)
_ = valuemetrics.PriceToBook(50.0, 30.0, 1.0)  // price / book per share

Index

• func BookValuePerShare(commonEquity, sharesOutstanding float64) float64
• func EarningsPerShare(netIncome, sharesOutstanding float64) float64
• func EarningsYield(eps, pricePerShare float64) float64
• func EarningsYieldFromPE(pe float64) float64
• func PEVerdict(pe float64) string
• func PriceToBook(pricePerShare, bookValuePerShare float64) float64
• func PriceToEarnings(pricePerShare, eps float64) float64

Functions

func BookValuePerShare

func BookValuePerShare(commonEquity, sharesOutstanding float64) float64

BookValuePerShare returns common equity divided by shares outstanding. It returns 0.0 if shares outstanding is non-positive.

func EarningsPerShare

func EarningsPerShare(netIncome, sharesOutstanding float64) float64

EarningsPerShare returns net income divided by shares outstanding (basic EPS). It returns 0.0 if shares outstanding is non-positive.

func EarningsYield

func EarningsYield(eps, pricePerShare float64) float64

EarningsYield returns EPS divided by price per share — the reciprocal of the P/E ratio. It returns 0.0 if price is non-positive. Useful for comparing a stock's earnings power directly to bond yields.

func EarningsYieldFromPE

func EarningsYieldFromPE(pe float64) float64

EarningsYieldFromPE returns the earnings yield for a given P/E ratio. It returns 0.0 if the P/E ratio is non-positive.

func PEVerdict

func PEVerdict(pe float64) string

PEVerdict returns a plain-language read on a P/E multiple vs. a broad-market benchmark (defaulted to ~20x for the modern S&P 500 average).

func PriceToBook

func PriceToBook(pricePerShare, bookValuePerShare float64) float64

PriceToBook returns the P/B ratio: market price per share divided by book value per share. It returns 0.0 if book value per share is non-positive.

func PriceToEarnings

func PriceToEarnings(pricePerShare, eps float64) float64

PriceToEarnings returns the trailing P/E ratio: price per share divided by earnings per share (EPS). It returns 0.0 if EPS is non-positive (P/E is undefined or negative earnings => not a meaningful positive multiple).