Tag: market capitalization

  • What Is Price/Cash Flow Ratio?

    The price/cash flow ratio (also called price-to-cash flow ratio or P/CF), is a ratio used to compare a company’s market value to its cash flow. Because this measure deals with cash flow, the effects of depreciation and other non-cash factors are removed. Similar to the price-earnings ratio, this measures provides an indication of relative value.…

  • What is P/S Ratio? How To Use P/S Ratio To Value Stocks?

    Price to Sales (P/S) Ratio is a financial ratio that compares stock price with sales per share (or market capitalization with total sales). It is for valuing a stock relative to its own past performance, other companies or the market itself. P/S Ratio is used in some industries as another gauge of valuation in addition…

  • The Price-to-book ratio, or P/B ratio

    The Price-to-book ratio, or P/B ratio, is a financial ratio used to compare a company’s book value to its current market price. It is calculated as share price divided by book value per share. Book value is most often calculated as Assets less Liabilities. However, some people conservatively calculate book value as Assets less Intangibles…