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Ledger Engine · Documentation

Evaluate Companies in Stock Exchange

A PHP-based decision-support tool that turns a listed company's raw filings — equity, share count, sales, costs, and market price — into a clear, three-part verdict: is the share fairly priced, how long until a market premium pays for itself, and how efficiently is the company turning its assets into profit.

Input fields
4
Evaluation standards
3
Outcome grades
9
Data source
MySQL
01 · Tool Description

What this tool is

This module is one screen inside a larger stock-market platform. Given a company's phone number, the market value of its share, its country, and a reporting year, it looks the company up in a company database table, prints its full financial record, and then runs that record through a fixed set of accounting formulas to produce a graded evaluation report — without requiring the visitor to do any arithmetic themselves.

It is not a live market-data feed. It works entirely from figures that a company or an analyst has already entered into the database for a given fiscal year, so the result reflects the company's fundamentals for that period, not real-time trading activity.

02 · Purpose & Goal

Why it exists

The goal is to answer three practical investing questions in one pass, using standard accounting logic rather than opinion:

By standardising the calculation, every company evaluated through the tool is judged against the same formulas — useful for investors comparing multiple listed companies side by side.

03 · How It Works

From form submission to graded report

The page runs in three stages once the form is submitted.

STAGE 1

Retrieve

The telephone number, year, and country are validated, then used in a parameterised query against the company table to fetch that company's full financial record for the chosen year.

STAGE 2

Compute

Gross profit, net profit (before and after interest), book value per share, and a return-on-assets ratio are derived from the raw figures using fixed formulas.

STAGE 3

Grade

Each derived figure is passed through threshold logic that assigns one of nine outcome labels across the three evaluation standards, and the matching report fragment is included on the page.

The three evaluation standards, explained

Standard I

Book Value vs. Par Value

Book value = Equity ÷ Shares is compared with the share's nominal value. A book value at or above par (or only modestly below it) signals a company with sound fundamentals; a book value well below par flags a company trading on weaker footing.

Standard II

Market Premium Payback

If the market price sits above book value, the gap is treated as a premium the investor is paying up front. Assuming a conservative 8% annual return on book value, the tool estimates how many years it takes for that premium to be recovered — two years or less is read as a quick, low-risk payback.

Standard III

Return on Assets Efficiency

Net profit (after cost of sales, expenses and interest) is measured against the company's asset base to produce a ratio, which is then mapped onto a five-tier scale from Excellent down to Loss-Making.

04 · Required Data

What you provide, and what the tool already holds

The visitor fills in four fields. Everything else is read from the company's existing database record for the matching year.

Field (you enter) Description Validation
Telephone number The registered phone number used as the company's lookup key in the database. Digits only, 1–20 characters.
Market value The current trading price of one share, as entered by the user. Numeric value.
Country The country the company operates and is listed in. Selected from a country list.
Year The fiscal year of the financial record to evaluate (2011–2015). Selected from a fixed list of years.

Fields pulled from the company record

FieldWhat it represents
name, email, tel, site, legal, sectCompany identity — name, contact details, website, legal status on the exchange, and sector.
proNominal (par) value per share.
capShareholders' equity (total capital).
idcNumber of issued shares.
n1 / n2Sales value / purchase (cost of sales) value.
n3 / n4 / n5Operating expenses / debit interest / other revenues.
n6Total assets value.
05 · Explanation of Results

Reading the outcome labels

lq3

Financially Sound

Book value meets or is close enough to par value. Fundamentals support the share's standing.

lq2

At Par

Book value exactly equals nominal value — a neutral, break-even reading.

lq1

Below Standard

Book value falls well short of par value — a caution flag on fundamentals.

Recovery ≤ 2 yrs

Quick Recovery

Any premium paid over book value is earned back fast at an assumed 8% yield — lower risk entry point.

Recovery > 2 yrs

Extended Recovery

The premium takes longer to pay back, implying the share carries a heavier valuation risk.

DfPP → DfLL

Efficiency Scale

Excellent · Very Good · Good · Fair · Weak · Loss-Making — five profit-to-assets tiers plus a loss flag.

06 · Practical Example

Walking through one company, start to finish

Below is a worked example, computed live by this page's own PHP using representative sample figures for a fictional listed company — laid out exactly as the tool itself would present it: first the record pulled from the database, then the full evaluation report.

Sample data — not a live database connection

Record extracted from the database

CompanyEmailTelWebsiteLegal Form YearSectorCountryNominal Value EquitySharesSalesPurchases ExpensesInterestOther Rev.Assets
Nile Delta Ceramics Co. ir@nileceramics-sample.com 32323232 www.nileceramics-sample.com Company is recorded in stock exchange 2015 Building Materials Egypt 10 15,000,000 1,000,000 8,000,000 5,000,000 500,000 200,000 100,000 20,000,000

Market value entered for this evaluation: 25.00 per share.

Full evaluation report

Financially Sound

Nile Delta Ceramics Co.

Fiscal Year 2015 · Building Materials · Egypt
Standard I · Book Value
Financially Sound
Book value 15.00 vs. par 10.00
Standard II · Payback
Extended Recovery
8.33 years to recover premium
Standard III · Efficiency
Good (DfGG)
Return ratio 4.85

Evaluation of the companies that are in stock exchange

07 · Applications

Who this is built for

Individual investors

Quickly sense-check whether a share's asking price is backed by the company's book value before buying, and estimate how patient an investment needs to be.

Brokers & analysts

Screen and compare multiple listed companies on a single, consistent scale rather than re-deriving ratios by hand for each one.

Company management

See how the market's asking price and the firm's own reported fundamentals line up, as an outside observer would read them.

Students & researchers

Use it as a hands-on illustration of book-value, payback-period, and return-on-assets analysis applied to real filings.

08 · Advantages

What it gets right

  • Turns raw filings into a plain-language verdict in one click, no manual ratio math required.
  • Applies the same formulas to every company, making side-by-side comparison fair and consistent.
  • Covers three distinct angles — valuation, payback, and efficiency — instead of a single ratio.
  • Presents the underlying figures alongside the verdict, so the reasoning stays transparent.
09 · Limitations

What to keep in mind

  • Results are only as current and accurate as the fiscal-year record stored in the database.
  • The 8% return assumption behind the payback-period calculation is fixed, not tailored per company or sector.
  • It evaluates one fiscal year at a time and does not account for trends across multiple years.
  • Purely quantitative — it does not weigh management quality, competitive position, or market sentiment.
  • Formulas are tuned to standard listed-company filings and may not suit unconventional financial structures.

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