Gross Margin
Revenue minus COGS, divided by revenue.
Gross margin measures the percentage of revenue retained after subtracting the direct cost of goods sold. It reflects pricing power and production efficiency. Gross margins vary widely by industry — software companies often exceed 70%, while retailers may be below 30%.
Formula
Related Terms
Operating Margin
Operating income divided by revenue.
EBITDA Margin
EBITDA divided by revenue (TTM).
Net Margin
Net income divided by revenue (TTM).
Market Capitalization
Share price multiplied by shares outstanding — the total equity value.
Enterprise Value (EV)
Market cap plus net debt — the total acquisition value of the business.
P/E Ratio
Share price divided by earnings per share — how much you pay per dollar of profit.