Market Test Ratios Market Test Ratios help investor to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. These ratios are concerned with …
Price/Earnings To Growth Ratio Price/Earnings To Growth Ratio is a refined version of the P/E ratio was popularized by Peter Lynch, in his 1989 book One Up on Wall Street that “The …
Price/Sales Ratio The Price/Sales Ratio measures the price of a company’s stock against its annual sales, instead of earnings. It is calculated by dividing the company’s market cap by the …
Price to Book value Ratio Price to book ratio (PBV ratio or P/B ratio) expresses the relationship between the stock price and the book value of each share. This ratio …
Price/Cash flow Ratio The price/cash flow ratio is a ratio used by investors to compare a company’s market value to its cash flow. It is calculated as follows: This ratio …
Dividend Yield Ratio Dividend yield is expressed as an annual percentage and is calculated as the company’s annual cash dividend per share divided by the current market price of the …
Payout Ratio Payout Ratio indicates as to what proportion of earning per share has been used for paying dividend and what has been retained. Dividend payout ratio is very important …
Earning per Share Ratio : EPS Earning per Share Ratio helps in determining the market price of equity shares of the company and in estimating the company’s capacity to pay …
Return on Equity This ratio indicates the percentage of net profit to equity shareholders’ capital. The higher the ratio percentage, the more efficient management is in utilizing its equity base …