Awesome Financial Ratios For Investors
Earnings per Share EPS.
Financial ratios for investors. F Debt to Equity Ratio. Financial Ratios for Stock Risk Just one more ratio before we get to those two that every investor should be using and this one is the debt-to-equity ratio. This ratio generally indicates the profitability of a company.
The commonly seen investor ratios include earnings per share EPS price-earnings ratio PE ratio dividend cover and dividend yield. This is defined as the ratio of net income to the weighted average shares outstanding of a company. The following five investor ratios are among the most commonly used by equity investors and analysts.
-The debt to equity ratio is a financial li- - Each industry has different debt to equity. Knowing the basic ratios can help you analyze better and make long-term investments. On the other hand if PB ratio is less than 1 the stocks are undervalued.
Total debt to total equity. Five Investor Ratios Definitions and Formulas. Debt-to-equity is another easy one and is helpful in seeing the amount of financial risk in a company.
Take a look at them understand their mechanism and make wiser financial decisions. Price Earnings to Growth PEG Ratio. In my opinion using ratios and financial tools in your job as an investor is crucial.
Quidity ratio that compares a companys ratio benchmarks as some industries tend.