Contents of this article:
- Portfolio Hub
- Holdings Section
- Portfolio Snowflake and Risk & Rewards
- What is 7D Return and how it is calculated?
- Portfolio Analysis
Portfolio Hub
The Portfolio Hub is a convenient feature that displays a list of all your portfolios in one place. It provides you with a comprehensive overview of the value, returns, and analysis of all your portfolios. This feature is an extension of the Dashboard widget and allows you to have a closer look at all your portfolios as an aggregate.
You can easily access all the portfolios that you own by navigating through the drop-down menu. This way, you can also view each portfolio in detail.
Holdings Section
Note: If your portfolio exceeds your subscription plan's limits, you'll face restrictions on excess holdings. These holdings won't be included in your portfolio's overall value, returns, or analytical insights. Check here for more information.
Chart: Performance VS Market
The Performance vs. Market chart provides a comparison between the performance of your current holdings and the broader market over a specific period of time. You can view the specific dates by navigating through the chart. This metric is useful in understanding how well the companies you hold have performed in comparison to the overall market.
How to calculate the value and cost of each holdings?
Total Value
The Total value is the combined worth of all of your holdings in the portfolio.
Formula: Total Value = current share price x no. of shares
Total Cost
Formula: Total Cost = average price x no. of shares
Illustration and Calculations:
Total Value = current share price x no. of shares
= US$170.12 x 5
= US$850.6
Total Cost = average price x no. of shares
= US$160 x 5
= US$800
How to calculate the Total Returns of each holdings?
Total Return
The Total Return indicates the unrealised profits or losses from all of your holdings in the portfolio.
Formula: Total Return = (current share price - average price) ÷ average price
Illustration and Calculations:
Total Return = (current share price - average price) / average price
= (US$170.12 - US$170) ÷ US$170
= US$0.12 ÷ US$170
= 0.0007 or 0.07%
How to calculate the Estimated Dividend Yield?
Estimated Dividend Yield
It represents the average dividend yield expected from your portfolio. It provides an estimate of the yearly income you can potentially earn based on the dividend payments of the underlying stocks.
Formula: Portfolio Dividend yield = Total of (shares x annualised dividend per share) ÷ Total of (shares x current share price)
Illustration and Calculations:
How to calculate the annual dividend payments of each holdings in the portfolio?
Formula:
Portfolio Annual Dividend Payment = Sum of the Annualised Dividend Payment of each stocks
Annual Dividend Payment of each stock = Annual Dividend Per Share X No. of Shares
Note: The “Annual Dividend” being referred to here is the annualised value of the dividend. Click here to learn more about annualized dividend and how it may differ from the actual dividend payment of the company.
Illustration and Calculations:
Portfolio Total Annual Dividend Payment = Sum of the Annualised Dividend Payment of each stocks
= MSFT's US$3 Dividends + NVDA's US$0.32 Dividends
= US$3.32
The data for the annual dividend for each of the stocks can be obtained in each of the individual company analysis particularly in the Dividend analysis section.
Further below are the calculations on how we derived the inputs for the annual dividend payment of each stocks in the above Portfolio Total Annual Dividend Payment.
For MSFT holdings,
Annual Dividend Payment = Annual Dividend Per Share x no. of shares
= US$3 x 1 shares
= US$3
For NVDA holdings,
Annual Dividend Payment = Annual Dividend Per Share x no. of shares
= US$0.160 x 2
= US$0.32
Portfolio Snowflake
The Portfolio Snowflake provides a comprehensive overview of your entire investment portfolio, offering a consolidated snapshot of the combined fundamental health of the companies within it. It is a visual representation derived from aggregating the individual Snowflakes of the companies in your portfolio.
Risks & Rewards
Under the portfolio snowflake, you can find the Risk (!) & Rewards (★)⋆section which displays the total number of risks and rewards associated with all the holdings in the portfolio. Our system performs risk checks on every company, and if any checks fail, we flag them as potential investment risks. These are then collectively presented in your portfolio to give you a quick overview.
What is the 7D return and how is it calculated?
The 7D Return is the unrealized price gain (also known as Capital Gains) of each holding from 1 week ago. It gives you a glimpse of the 1-week performance of your portfolio.
Formula: 7-day Return = (Current Price - Price 7 Days Ago) ÷ Price 7 Days Ago
Portfolio Analysis
The portfolio Analysis tab composes of two sub-section, the Key Metrics & Benchmarks then the portfolio Diversification.
Note: If your portfolio exceeds your subscription plan's limits, you'll face restrictions on excess holdings. These holdings won't be included in your portfolio's overall value, returns, or analytical insights. Click here for more information.
Key Metrics & Benchmarks
This sub-section of the portfolio analysis shows the weighted version of the 5 key analysis sections that we are also reflecting in the snowflake - namely, the Valuation, Future, Past Performance, Financial Health and Dividends.
Portfolio Valuation
- Fair Value
- The Portfolio Fair Value is determined using the Discounted Cash Flow (DCF) method, an intrinsic valuation technique that forecasts future cash flows of each stock in your portfolio. Please refer here to learn more about the Discounted Cash Flow model.
- Calculations:
- Portfolio Price= Sum of (no. of shares × current share price)
- Portfolio Fair Value = Sum of (no. of shares × Fair value)
- Price-to-Earnings (PE) Ratio
- The Portfolio Price-to-Earnings (PE) Ratio assesses the value investors place on a portfolio's total earnings. It's particularly relevant for portfolios comprising mature and profitable companies.
- Calculations:
- PE Ratio = Sum of (no. of shares x current share price) ÷ Sum of (no. of shares x Earnings per share)
- Price-to-Sales (PS) Ratio
- The Portfolio Price-to-Sales (PS) Ratio measures the value investors place on a portfolio's total revenue. It's especially useful for portfolios with rapidly growing or unprofitable companies.
- Calculations:
- PS Ratio = Total of (no. of shares x current share price) ÷ Total of (no. of shares x Revenue per share)
Note: Holdings with negative Revenues are excluded
- Price-to-Expected Growth (PEG) Ratio
- The Portfolio Price-to-Expected Growth (PEG) Ratio offers a different perspective on your portfolio's valuation by considering not just earnings but also expected earnings growth. This ratio is particularly valuable for investors looking to assess whether the portfolio's growth prospects justify its current valuation.
- Calculations:
- Weighted average of the PEG ratios of individual stocks in the portfolio
Note: Holdings with negative Revenues are excluded
- Price-to-Book (PB) Ratio
- The Portfolio Price-to-Book (PB) Ratio measures the market valuation of your portfolio compared to its book value, particularly effective for portfolios with a mix of mature and capital-intensive companies such as banks, REITs, large manufacturing companies, etc. A lower ratio might indicate an undervalued portfolio, while a higher ratio suggests a potential overvaluation.
- Calculations:
- PS Ratio = Total of (no. of shares x current share price) ÷ Total of (no. of shares x Book value per share)
Future Growth
- Annual Earnings Growth vs Market
- The Annual Earnings Growth vs Market bar chart showcases the comparison between the Portfolio's Annual Earnings Growth and that of the broader market, spanning both past and projected future performance over 3-year periods.
- This side-by-side comparison facilitates a comprehensive assessment of the portfolio's earnings growth trajectory against market trends, highlighting whether your portfolio is outpacing, matching, or falling behind the market.
- Calculations:
- 1. Past Average - Weighted average of annual percentage growth in past Earnings
- 2. Future Average - Weighted average of annual percentage growth in future Earnings
- Annual Revenue Growth vs Market
- The Annual Revenue Growth vs Market bar chart provides a comparative analysis of the Portfolio's Annual Revenue Growth with the broader market, encompassing both historical performance and future projections over 3-year periods.
- This visual presentation enables a detailed evaluation of how the portfolio's revenue growth has unfolded over time and how it is anticipated to evolve, relative to market dynamics. Such a comparison is crucial in understanding whether your portfolio is surpassing, equating, or trailing behind market revenue trends.
- Calculations:
- 1. Past Average - Weighted average of annual percentage growth in past Revenue
- 2. Future Average - Weighted average of annual percentage growth in future Revenue
- EPS Growth vs Market
- The EPS Growth vs Market bar chart displays the comparison of Annual EPS (Earnings Per Share) Growth between the portfolio and the broader market, covering both historical data and future projections over 3-year periods. By observing whether the portfolio's EPS growth is outperforming, matching, or lagging behind the market, investors can gain insights into the relative financial health and earnings potential of their investments
- Calculations:
- 1. Past Average - Weighted average of annual percentage growth in past Earnings per share (EPS)
- 2. Future Average - Weighted average of annual percentage growth in future Earnings per share (EPS)
Past Performance
- Return on Equity (ROE)
- The Return on Equity (ROE) chart presents a comparison of the Portfolio's Return on Equity (ROE) with that of the broader market. ROE measures a company's ability to generate profits from its shareholders' equity, effectively showing how efficiently equity is being used to produce earnings.
- This direct comparison of your portfolio ROE vs market aids in evaluating the efficiency of the portfolio in generating profits relative to the market standard. A higher ROE indicates a more efficient use of equity in generating profits, while a lower ROE may suggest the opposite.
- Calculations:
- Return on Equity (ROE)= Total of (no. of shares x Earnings per share) ÷ Total of (no. of shares x Equity per share)
- Return on Capital Employed (ROCE)
- The Return on Capital Employed (ROCE) chart illustrates the comparison of the Portfolio's ROCE with the broader market's average. ROCE is a vital financial metric that evaluates a company's profitability and efficiency in using its capital. It measures the returns that a company achieves from its capital employed, providing insight into how effectively the invested capital is being utilized to generate profits.
- In this chart, the direct comparison of your portfolio's ROCE with the market average offers a clear perspective on your portfolio's effectiveness in using its capital relative to the broader market. A higher ROCE indicates more efficient use of capital in generating profits, while a lower ROCE may point to less efficiency.
- Calculations:
- Return on Capital Employed (ROCE)= Total of (no. of shares x Earnings before interest and taxes (EBIT) per share) ÷ Total of (no. of shares x Capital employed per share)
- Return on Assets (ROA)
- The Return on Assets (ROA) chart compares your portfolio's Return on Assets (ROA) to the market average, highlighting efficiency in using assets to generate earnings. ROA reflects a company's profitability from its assets. A higher ROA indicates better asset utilization for income generation, while a lower ROA suggests less efficiency.
- Calculations:
- Return on Assets (ROA)= Total of (no. of shares x (Earnings per share - Net interest expense per share) ÷ Total of (no. of shares x Total assets per share)
Financial Health
- Net Debt to Equity vs Market
- The Net Debt to Equity vs Market chart compares your portfolio's Net Debt to Equity ratio with the market average. This ratio measures a company's financial leverage by comparing its total net debt to its shareholders' equity. It's a key indicator of the portfolio's debt level relative to its equity, helping assess financial stability and risk. A higher ratio suggests greater leverage and potential risk, while a lower ratio indicates less reliance on debt financing.
- Calculations:
- Net Debt to Equity = Total of (no. of shares x Debt per share) ÷ Total of (no. of shares x Equity per share)
Dividends
- Portfolio Dividend Yield
- The Dividend Yield chart compares your portfolio's Dividend Yield with the market average. This metric offers insight into your portfolio's capacity to generate income. A higher yield indicates a stronger income return relative to the stock price, suggesting a focus on income-generating investments. Conversely, a lower yield may point to growth-focused holdings.
- Calculations:
- Dividend Yield = Total of (no. of shares x Dividend per share) ÷ Total of (no. of shares x current share price)
- Dividend Growth Rate
- The Dividend Growth Rate chart presents a comparison between your portfolio's Dividend Growth Rate and the market average.
- The Dividend Growth Rate is a measure of the year-over-year increase in dividends paid by the portfolio's holdings. It's a key indicator of a company's financial health and its ability to consistently increase dividend payouts. A higher Dividend Growth Rate in your portfolio compared to the market suggests a robust and growing income stream, reflecting strong company performance and commitment to shareholder returns. Conversely, a lower rate may indicate more stable but slower-growing dividends.
- Calculations:
- Dividend Growth Rate = weighted average of all dividend growth rate
- Payout Ratio
- The Payout Ratio chart contrasts your portfolio's Dividend Payout Ratio with the market average. The Dividend Payout Ratio, calculated as the percentage of earnings paid to shareholders in dividends, indicates how much of a company’s profit is returned to investors as dividends. A higher payout ratio in your portfolio compared to the market might suggest a focus on providing immediate shareholder returns, often characteristic of more established, stable companies. On the other hand, a lower ratio can indicate reinvestment of profits into the business, typical of growth-oriented companies.
- Calculations:
- Payout Ratio = Total of (no. of shares x Dividend per share) ÷ Total of (no. of shares x Earnings per share)
Note: Holdings with no dividend are excluded from the calculation.
Diversification
Diversification across Industries
The Diversification across Industries chart shows the breakdown of your portfolio by sector and industry, helping you identify industry concentrations and inform diversification strategies.
Diversification across Holdings
The Diversification across Holdings pie chart displays the proportional weight of each holding in your portfolio. It helps you determine the balance of your investments, identify major assets, and guide effective portfolio rebalancing.
Geographic Exposure
The Geographic Exposure chart shows how your portfolio spans globally with this geographical revenue breakdown. This chart is key for assessing regional market exposure, helping in making informed decisions for a more resilient and diversified investment strategy.
Still have questions or need further assistance?
Don't hesitate to contact our support team through our support contact form or email us directly at support@simplywallst.com. We're here to ensure you have the best experience possible.