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Price Ratios

Price Ratios calculate the multiple of the current Share Price to Book Value and various P&L entries. Widely used to compare and contrast Stock, Sector and even Index Valuations.

The Price Ratios are a series of ratios calculated by using the current Share Price as the Denominator and using various P&L entries and Book Value as a Numerator. The different items used as a Numerator taken from the Profit and Loss include, Sales, EPS (PE Ratio), Dividend per Share, Cash Flow per Share or Balance Sheet items, Book Value per Share or Tangible Book Value per Share. The Price Ratios are used as a historical comparison over a Stocks trading history, against the Sector Index or the major Index. For Sectors, Price Ratios can be aggregated for Intra Sectorial comparisons and against a major Index, such as the S&P 500.

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Warren William

Meet the author behind Smartest-Data. Warren William has a career in Finance and Investments extending over 35 years, both on the Buy Side and Sell Side. His most recent roles include, developing Institutional Risk Management Programs for managing Equity and Fixed Income Risk.  Prior to this Warren William work in Alternative Investments, in Investment Management and as a Buy Side Equity Analyst. Warren William brings a wealth of knowledge and expertise to the table, providing in-depth analysis and commentary on the latest trends in the Stock Markets. Contact information: wwBLOG@smartest-data.blog or Telegram +393339034488

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