Introduction to Performance Indicators

See how any company is performing relative to its sector and the market as a whole. We have taken a handful of key financial data points and have shown how every UK company measures up.

How do Performance Indicators Work?

A Performance Indicator gives you an 'at a glance' picture of how any company is performing relative to its peers. The more bars the company receives, the better it has performed.

A Performance Indicator that has five bars indicates a company that is better than all its peers.
A Performance Indicator that has two and a half bars indicates a company that is average.
A Peformance Indicator that has one or no bars indicates a company that is worse than its peers.

Understanding the bars

The bars on the blue background represent how a particular company is performing relative to the market.
The bars on the green background represent how a particular company is performing relative to its sector.

Using the Performance Indicators

To keep things simple, just remember that the more bars there are, the better the share is performing. A quick glance of the Performance Indicators should tell you whether a share is worth researching or not - lots of bars should encourage you to dig a little deeper.

In some cases, less is considered more. For example, it is generally accepted that a low P/E ratio is a sign of a good value share. So for companies that have a very low P/E, their Performance Indicators would have four or five bars - indicating that the market would consider their P/E value to be better than average. The same is true for PEG ratios.

Examples

Dividend Yield

This Performance Indicator for a company's dividend yield shows us that the yield is well above market average, but well below sector average. This would happen if that particular sector tended to pay a high dividend (hence the entire sector would be above market average) but this particular company pays a low dividend - relative to its sector.

Price Chg 6m

This Performance Indicator for a company's change in price over the last 6 months shows us that their price has gone up by more than the market average, but slightly less than the sector average. This would happen if that particular sector had been outperforming the market as a whole, but this company is underperforming relative to its sector.

Note 1: All financial ratios are based on historical data and not forecast data.