# How Indicators Are Calculated This page explains the definitions of, and calculation principles for, the indicators provided by the [Valuation Indicators API](/en/spec/eq-valuation).\ J-Quants calculates each indicator using information disclosed in financial statements and other materials, together with share-price data. > **Info** > > - This page describes the basic **principles** underlying the indicators. Detailed calculation specifications, including the treatment of the number of shares and adjustments for changes in fiscal year-end, are not disclosed. > - The indicators are provided for reference when making investment decisions and do not constitute a recommendation to buy or sell any particular security. ## Basis of Calculation ### TTM Net Income (Earnings Used to Calculate Actual Values) Actual EPS, ROE, and PER are calculated using net income for the trailing twelve months (TTM).\ On this page, the total net income over these twelve months is referred to as **TTM net income**.\ Compared with using full-year results alone, this approach incorporates quarterly disclosures and therefore better reflects recent performance. ### Company-Forecast Net Income (Earnings Used to Calculate Forward Values) Indicators with `Fwd` in their names (FwdEPS, FwdROE, and FwdPER) are calculated using the company's forecast net income for the current fiscal year. ### Share Price (Closing Price for the Day) PER, FwdPER, PBR, and market capitalization are calculated using the closing price for the day.\ If no trade is executed on a given day, the base price applicable to that day is used instead. ## Indicator Definitions ### EPS — Earnings per Share (Actual) If the company reports a net loss, EPS is recorded as a negative value, representing loss per share. ``` EPS = TTM net income / Number of shares ``` ### FwdEPS — Forward Earnings per Share The value is Null if the company has not published a forecast or has withdrawn its forecast.\ If the company forecasts a net loss, FwdEPS is recorded as a negative value, representing forecast loss per share. ``` FwdEPS = (Company-forecast net income) / Number of shares ``` ### BPS — Book Value per Share If shareholders' equity is negative, BPS is recorded as a negative per-share value. ``` BPS = Shareholders' equity at the end of the most recent quarter / Number of shares ``` ### ROE — Return on Equity (Actual) The value is Null if the average shareholders' equity at the beginning and end of the TTM period, which is used as the denominator, is zero or negative.\ If the numerator is negative because the company reports a net loss, ROE is recorded as a negative value. ``` ROE = TTM net income / Average shareholders' equity at the beginning and end of the TTM period ``` ### FwdROE — Forward Return on Equity The value is Null if the company has not published a forecast or has withdrawn its forecast.\ The value is also Null if the shareholders' equity used as the denominator is zero or negative. ``` FwdROE = (Company-forecast net income) / Shareholders' equity at the end of the most recent quarter ``` ### PER — Price-to-Earnings Ratio (Actual) The value is Null if EPS is zero or negative. ``` PER = Share price / EPS ``` ### FwdPER — Forward Price-to-Earnings Ratio The value is Null if the company has not published a forecast or has withdrawn its forecast.\ The value is also Null if FwdEPS is zero or negative. ``` FwdPER = Share price / FwdEPS ``` ### PBR — Price-to-Book Ratio The value is Null if BPS is zero or negative. ``` PBR = Share price / BPS ``` ### Market Capitalization (MktCap) Market capitalization is calculated using the number of shares excluding treasury shares. Its definition therefore differs from market capitalization calculated using total shares issued or free-float shares. ``` Market capitalization (JPY millions) = (Share price × Number of shares) / 1,000,000 ``` ## When Values Are Null The applicable field is recorded as Null in any of the following cases: - The data required for calculation is unavailable, such as during the initial data-coverage period, shortly after a security is listed, or during a transition following a change in fiscal year-end. - The company has not published a forecast or has withdrawn its forecast. This applies only to indicators with `Fwd` in their names. - The security is outside the scope of indicator calculation, such as an ETF, ETN, or preferred stock. A data row is still returned, but all indicators are Null. Market capitalization is not subject to the determination of whether a security is within the scope of indicator calculation. A market-capitalization value may therefore be recorded for a security whose other indicators are Null, such as a preferred stock or REIT. However, because the number of shares is calculated using information disclosed in financial statements, market capitalization is Null for ETFs, ETNs, and similar securities, as well as for newly listed securities before their first financial results are disclosed. For the initial data-coverage period, approximately 2008 to 2010, the share-count and financial information required for calculation may be incomplete. Consequently, more securities and fields are recorded as Null during this period. In addition to the cases above, a value is Null if the resulting ratio would not be meaningful, such as when the company reports a net loss or shareholders' equity is zero or negative, even if all data required for calculation is available. See [Indicator Definitions](#Indicator-Definitions) for the conditions applicable to each indicator. ## Differences from Values Provided by Other Services Even when indicators have the same name, values may differ from those provided by other sources or services because of differences in the definition of the number of shares, the scope of disclosures used, rounding methods, and other calculation details.\ In addition, the indicators for each day are calculated from the information disclosed up to that day, and values for past days are not retroactively revised.\ J-Quants calculates the values provided by this API in accordance with the principles described above. Please review these calculation principles when using the API values.