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The price-to-book ratio, or P/B ratio, is a financial ratio used to compare a company’s current market price to its book value. The calculation can be performed in two ways, but the result should be the same: 1. The company’s market capitalization can be divided by the company’s total book value from its balance sheet. […]

The PEG ratio (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company’s expected growth. In general, the P/E ratio is higher for a company with a higher growth rate. Thus using just the P/E ratio would

Price-to-sales ratio, is a valuation metric for stocks. It is calculated by dividing the company’s market cap by the company’s revenue in the most recent year; or, equivalently, divide the per-share stock price by the per-share revenue. Unless otherwise stated, P/S is “trailing twelve months” (TTM), the reported sales for the four previous quarters, although

Instead of net income, the Forward P/E uses estimated net earnings over next 12 months. Estimates are typically derived as the mean of a select group of analysts (note: selection criteria is rarely cited). In times of rapid economic dislocation, such estimates become less relevant as the situation changes (e.g. new economic data is published,

The P/E ratio is defined as: However, with Trailing Price to earnings (P/E) the earnings per share is the net income of the company for the most recent 12 month period, divided by the weighted average number of common shares in issue during the period. Monthly earning data for individual companies are not available, so