Price to earnings (P/E) and price to sales (P/S) are the first ratios that come to an investor’s mind while narrowing down a list of undervalued stocks. However, the price-to-book ratio (P/B ratio), ...
Peter Gratton, Ph.D., is a New Orleans-based editor and professor with over 20 years of experience in investing, risk management, and public policy. Peter began covering markets at Multex (Reuters) ...
Return on Equity, Price to Book Ratio and Price to Earnings Ratio interact in interesting ways. Value investors strive to maximize ROE while minimizing P/E and P/B. Return on Price or Earnings Yield ...
The task of spotting a discounted stock is quite difficult. Value investors have tried various ways to identify stocks trading at a discount to their actual value. When you are a growth investor, you ...
When evaluating a company, investors mostly look at a stock’s price-to-earnings (P/E) or price-to-sales (P/S) ratio. While P/E is the ratio of annual earnings to stock price, P/S reflects the amount ...