Glossary


Letter: R
 
Rating (also, credit rating) Valuation of the financial soundness of a company as well as its reliability as debtor. It is one of the major instruments to prevent and control the risk of insolvency in the most advanced markets. The rating is published by specialized agencies (rating agencies). The best known in the world are Moody's and Standard&Poor's.
Pirelli & C. does not have bonds and has filed no request for rating since it was not needed toh ave suitable sources of collection.
 
Recommendations Recommendations represent the investment rating of the stock, and are function of analyst's expectation of total return (forecast price appreciation and dividend yield). Recommendations can slightly vary for each broker. Most of brokers apply the following recommendations: BUY-OUTPERFORM: stock's total return is expected to outperform the total return of a relevant benchmark, with shares rising in price on an absolute basis.
SELL-UNDERPERFORM: stock's total return is expected to underperform the total return of a relevant benchmark, with share price not anticipated to show a gain.
HOLD-NEUTRAL-IN LINE: stock's total return is expected to closely approximate the total return of a relevant benchmark with shares price generally rising in price on an absolute basis.
 
Reference price The reference price is the closing auction price. In case such determination is not possible, the reference price is the weighted average of the prices related to the last 10 percent of the amount of stocks traded during the trading day. The last reference price calculated by the telematic Stock Exchange system expresses the listing trend for a given stock upon closing of trading (Stock Exchange)
 
 
Relevant shareholding In a listed company, the legal definition of “relevant” means any shareholding exceeding 2% of the total corporate capital. In the case of a shareholding in a non-listed joint stock company or in a limited liability company the minimum threshold to define it as relevant increases to 10% of the capital (Consob - italian version)
 
ROE (Return On Equity) Indicator used to measure the yield on a company’s own capital. Calculated as the ratio between the income and the net capital (Highlights)
 
ROI (Return On Investment) Indicator on income from invested capital in a company or business. Obtained by calculating the ratio between operating income and capital used on average by the company (Highlights)