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The Transtheoretical Model (TTM)

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The Transtheoretical Model (TTM)


Definitions:

Payout Ratio

The percentage of earnings paid to shareholders in dividends, indicating how much money a company returns to its shareholders versus how much it retains for growth.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue.

Dividends

Payments made by a corporation to its shareholder members, typically out of the company's profits.

Price-earnings Ratio

A valuation metric for a stock, calculated by dividing the current share price by the earnings per share.

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