GARP - Growth at a reasonable price. A ratio of less than one is viewed as cheap while ratios well over 1 are viewed as expensive. The relationhip between a dollar of expense and a dollar of income. Microsoft is a high margin business. Low Margin Business - A business that spends a high amount to generate revenues.
Supermarkets are a low margin business.
Margins - The relationship between the expenses of the businesses to revenues. The lower the expenses of the business in relation to income the higher the margins and the higher the expenses the thinner the margins. Market Share - The company's sales in a product line versus total industry sales in that product category. Price of the Stock divided by the company's Book Value per Share. Net Income, for purposes of this calculation, is after adding back interest expense on an after tax basis.