What is the price more?
The price of more than a price is a ratio that uses the price of share share along with another financial metrision to provide information on the financial power of the company. Comparing the same price more than in different companies can help the investor understand which company can be a better investment. There are a number of commonly used price multiples, each providing different information about the company.
The price ratio of earnings compares the price of the shareholding of the company to profit per share or EPS. The ratio of prices to earnings, or ratio P/E, is the stock price divided by the company's earnings on the share, as is announced in its annual revenue. The ratio of earnings is usually calculated annually, although the share on the share may be announced quarterly. The ratio of additional prices to earnings or forward compares the current price of shares with the expected profit on the share in the future.
The price of earnings for growth, or the ratio of the Peg, divides the ratio of the price/earnings for the annual growth of the company per share. This price amount is a popular indicatorEM the value of the company's shares. It is a similar price ratio to revenues, but also responsible for growth. If the Peg ratio is low, the shares can be underestimated and therefore a good investment.
The ratio of the price to the book, or the ratio of P/B, is the measure of the price of the company's shares compared to the company's accounting value per share. The accounting value is defined as the total assets of the company, minus its intangible assets and liabilities. If the price ratio to the book is low compared to others in the same industry, the company may be underestimated or the company may have financial problems.
The price ratio to the flow compares the price for a share with the company's cash flow. This shows the financial situation of the company without considering depreciation and other cashless factors. The price ratio for sale or price/sales is calculated by distributing the price of shares for annual income of the company per share. Research price ratio compares the price of shares of the company with the particleOU spent on research and development.
Any price of more prices is most useful in comparing different companies in the same industry. These conditions can be very different from industry to industry. If you want to get the exact assessment of the company's financial strength, compare its price multiples with the multivals of its competitors. Many price multiples are used in the analysis of Barra risk factors, which attempts to measure the risk of the company's shares as an investment.