Tunis Stock Exchange glossary: P/E, yield, TUNINDEX…

Glossary

43 terms

Tunis Stock Exchange (BVMT): The Bourse des valeurs mobilières de Tunis runs the trading of listed securities and publishes prices, indices and notices. Its publications are Mizen's primary source.
Financial Market Council (CMF): The Tunisian market regulator. Listed companies file their financial statements and activity indicators with it; it publishes its own notices.
Ticker: The short code that identifies a stock on the exchange (SFBT, BIAT, AB…). It is also the address of its page on Mizen: /valeur/SFBT.
Closing price, reference price: The closing price is the session's last price; it becomes the next session's reference price, from which the day's change and the thresholds are measured.
Market capitalisation: The number of listed shares times the last price: what the market values the whole company at.
Free float: The share of capital actually available for trading, excluding controlling shareholders' blocks. Mizen uses the rate published by the exchange.
Free-float capitalisation: Market capitalisation times the free float. It is what weights stocks in the TUNINDEX.
TUNINDEX: The Tunis Stock Exchange benchmark index, weighted by free-float capitalisation, base 1,000 on 31/12/1997. Read more
TUNINDEX20: The index of the twenty largest and most liquid listed stocks, selected by the exchange's index committee. Read more
Sector indices: Sub-indices of the TUNINDEX by sector (banks, insurance, retail…), to compare a stock with its peers rather than with the whole market. Read more
P/E ratio: The price divided by earnings per share for the last published financial year: how many years of earnings a buyer pays at today's price. Read more
Earnings per share (EPS): The financial year's net income divided by the number of listed shares. Read more
Price / book (P/B): The price divided by book value per share. Above 1 the market pays more than the accounting value of equity; below 1, less. Read more
Book value per share: Shareholders' equity divided by the number of shares: the accounting equity attributable to each share. Read more
ROE (return on equity): Net income over shareholders' equity: what the company earns for each dinar contributed or retained by its shareholders. Read more
ROA (return on assets): Net income over total assets. Useful for banks, whose assets are very large compared with their equity. Read more
EBITDA: Operating profit before depreciation and provisions: what the business generates before the cost of investment and debt. Read more
Enterprise value / EBITDA: Market capitalisation plus net debt, divided by EBITDA. It compares companies with different levels of debt. Read more
Operating margin: Operating profit divided by revenue (net banking income for a bank), over the same financial year. Read more
Net banking income: A bank's equivalent of revenue: interest margin, fees and portfolio income, net of the related charges.
Dividend per share: The share of profit the general meeting decides to pay for each share. For a resident individual it bears a 10% withholding tax.
Dividend yield: The last dividend per share divided by today's price. Mizen publishes none when the last known dividend is more than two financial years old. Read more
Payout ratio: Total dividends divided by net income: the share of profit returned to shareholders rather than kept in the company. Read more
Ex-dividend date: The session from which the share trades without its dividend: the reference price is reduced accordingly. A buyer on that day does not receive this dividend.
Ordinary general meeting (AGO): The annual shareholders' meeting that approves the accounts and decides how the profit is allocated, hence the dividend. It is held within six months of the year end. Read more
Extraordinary general meeting (AGE): The meeting that amends the articles: capital increase or reduction, share split, merger. Read more
Financial statements: Balance sheet, income statement, cash flows and notes, filed every year (and every half-year) by listed companies. Mizen's ratios are taken from them. Read more
Quarterly activity indicators: The quarterly figures (revenue or net banking income, output, debt…) that every listed company publishes within twenty days of the quarter end. Read more
Volatility: The standard deviation of daily changes over a year, annualised. The higher it is, the more the price moves from one session to the next. Read more
Beta: A stock's sensitivity to TUNINDEX moves: a beta of 1.2 means it moved on average 1.2% when the index moved 1%. Read more
Maximum drawdown: The largest fall from a peak to a later trough over the period: what a buyer at the top would have lost at the worst moment. Read more
52-week high and low: The highest and lowest closing prices over the last rolling year.
Liquidity: The amount traded in a stock per session. An illiquid stock can go sessions without a trade, and a large sale moves its price.
Turnover ratio: Shares traded over a year relative to listed shares: the share of the capital that changes hands. Read more
Mizen score: A 0–100 mark summarising several factors (valuation, profitability, risk, liquidity…) by their rank in the market. It describes, it does not recommend: the methodology details each weighting. Read more
Base 100: Rebasing several curves to 100 on the first day of the period to compare how they moved, whatever the scale of their prices. Read more
Reservation thresholds: The price limits around the reference price beyond which trading in a stock is reserved, i.e. halted for a while. Read more
Pre-opening: The phase before the open when orders accumulate without being executed; the exchange shows a theoretical opening price.
Call auction and continuous trading: In continuous trading orders execute throughout the session; in a call auction they are matched at set times at a single price. Illiquid stocks trade by auction.
Settlement: The actual exchange of shares for cash, two trading days after the trade (T+2). Read more
Share split: Each share is replaced by several: the price is divided accordingly, without changing what the shareholder owns. Mizen adjusts the history accordingly.
Capital increase: The issue of new shares, for cash or by capitalising reserves (bonus shares). It changes the number of shares, hence market capitalisation and earnings per share.
BCT exchange rate: The average interbank market rate published daily by the Central Bank of Tunisia: the reference for converting and valuing, distinct from banks' counter rates. Read more