Here is a relatively simple one that has been around for quite some time, but is often overlooked by everyone. ISO, or isolated power, is a measure of a player's raw power in terms of extra base hits. It is calculated by subtracting a player's batting average from his slugging percentage, which ultimately, leaves you with a numeric value for the extra-base hits (power hits).
So what does ISO do that slugging percentage doesn't? The key, as noted above, is removing singles from the equation. By doing so, you have a better measure of a players "bang for buck." So if a player has a relatively low batting average, but still puts up an impressive slugging percentage, we know that he is bringing some value to the table. ISO makes seeing that value a bit easier.
Let's take, for instance, ISO favorite Adam Dunn. Dunn, a career .252 hitter, would be of little major league value as a 1st baseman if he didn't exhibit any power. In 2005 with the Reds, Dunn hit an unimpressive .247, but his .293 ISO showed that when he was making contact, it was often for extra-base hits. The flip side to an Adam Dunn is a player like Juan Pierre. Pierre for his career has consistently put up good or better batting averages (made evident by his .304 career BA) but his career ISO of .069 makes my little sister look like Dave Kingman. So although Pierre hits, his value needs to be adjusted based on his complete lack of power. That's the power and ease of ISO.
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