Volulation Ratio

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1.

PE Ratio (Price-to-Earnings Ratio):


 Definition: The PE ratio compares a company's stock price to its earnings per share (EPS), providing insight into its valuation.
 Example: If a company's stock is trading at $50 per share, and it has an EPS of $5, the PE ratio is 10 ($50 / $5).
2. Dividend Yield:
 Definition: Dividend yield is the annual dividend payment as a percentage of the stock's current price, indicating income generated from
holding the stock.
 Example: If a stock pays an annual dividend of $2 per share, and the stock is trading at $40, the dividend yield is 5% ($2 / $40).
3. Dividend Yield vs Sector:
 Definition: This compares a company's dividend yield to the average dividend yield of its sector, helping investors assess its performance
in relation to its industry.
 Example: If a company's dividend yield is 5%, and the sector average is 4%, the company has a higher dividend yield than its sector.
4. Dividend Yield vs Sub-sector:
 Definition: Similar to the above, this compares a company's dividend yield to the average yield within its sub-sector for a more specific
industry comparison.
5. Enterprise Value (EV):
 Definition: EV is a measure of a company's total value, including its market capitalization, debt, and minority interests.
 Example: If a company has a market cap of $50 million, $20 million in debt, and $5 million in minority interests, its EV is $75 million ($50
million + $20 million + $5 million).
6. EV / Invested Capital:
 Definition: This ratio measures a company's efficiency in utilizing its invested capital to generate returns.
 Example: If a company has an EV of $100 million and invested capital of $80 million, the EV / Invested Capital ratio is 1.25 ($100 million /
$80 million).
7. EV / Revenue Ratio:
 Definition: This ratio assesses a company's valuation by comparing its enterprise value to its total revenue.
 Example: If a company has an EV of $150 million and generates $30 million in revenue, the EV / Revenue ratio is 5x ($150 million / $30
million).
8. EV / Free Cash Flow:
 Definition: This ratio evaluates a company's valuation by comparing its enterprise value to its free cash flow, indicating how efficiently it
generates cash from operations.
 Example: If a company has an EV of $120 million and generates $24 million in free cash flow, the EV / Free Cash Flow ratio is 5x ($120
million / $24 million).
9. EV / EBIT Ratio:
 Definition: The EV / EBIT ratio assesses a company's valuation by comparing its enterprise value to its earnings before interest and taxes
(EBIT).
 Example: If a company has an EV of $200 million and an EBIT of $40 million, the EV / EBIT ratio is 5x ($200 million / $40 million).
10. EV/EBITDA Ratio:
 Definition: Similar to the EV / EBIT ratio, this ratio compares enterprise value to EBITDA (earnings before interest, taxes, depreciation, and
amortization).
 Example: If a company has an EV of $150 million and EBITDA of $30 million, the EV/EBITDA ratio is 5x ($150 million / $30 million).
11. Sector Dividend Yield:
 Definition: This provides the average dividend yield for all companies within a specific sector, helping investors understand sector trends.
12. Sector PB (Price-to-Book) Ratio:
 Definition: It offers the average PB ratio for companies in a particular sector, aiding in sector-wide valuation comparisons.
13. Sector PE (Price-to-Earnings) Ratio:
 Definition: This provides the average PE ratio for companies in a specific sector, helping investors assess sector-wide valuations.
14. Price / Free Cash Flow:
 Definition: This ratio assesses a company's valuation by comparing its stock price to its free cash flow per share.
 Example: If a stock is trading at $60 per share, and it has free cash flow of $10 per share, the Price / Free Cash Flow ratio is 6x ($60 / $10).
15. PB Premium vs Sub-sector:
 Definition: This compares a company's PB ratio to the average PB ratio within its sub-sector, helping investors understand relative
valuations in a specific industry segment.
16. PB Premium vs Sector:
 Definition: Similar to the above, this compares a company's PB ratio to the average PB ratio within its sector, providing insight into its
valuation relative to its sector.
17. PB Ratio (Price-to-Book Ratio):
 Definition: The PB ratio compares a company's stock price to its book value per share, indicating whether the stock is undervalued or
overvalued.
 Example: If a stock is trading at $40 per share, and its book value per share is $30, the PB ratio is 1.33x ($40 / $30).
18. PE Premium vs Sub-sector:
 Definition: This compares a company's PE ratio to the average PE ratio within its sub-sector, offering insights into its relative valuation
within a specific industry segment.
19. PE Premium vs Sector:
 Definition: Similar to the above, this compares a company's PE ratio to the average PE ratio within its sector, helping investors assess its
valuation relative to its sector.
20. Forward PE Ratio:
 Definition: The forward PE ratio uses future earnings estimates to assess a company's valuation, providing a forward-looking perspective
on its stock price.
21. Price / Sales:
 Definition: This ratio assesses a company's valuation by comparing its stock price to its revenue per share.
 Example: If a stock is trading at $50 per share, and it has revenue of $10 per share, the Price / Sales ratio is 5x ($50 / $10).
22. Price / CFO:
 Definition: This ratio evaluates a company's valuation by comparing its stock price to its cash flow from operations per share.
23. PS Ratio (Price-to-Sales Ratio):
 Definition: The PS ratio compares a company's stock price to its revenue per share, helping investors assess its valuation.
24. PS Premium vs Sub-sector:
 Definition: This compares a company's PS ratio to the average PS ratio within its sub-sector, offering insights into its relative valuation
within a specific industry segment.
25. Forward PS Ratio:
 Definition: The forward PS ratio uses future revenue estimates to assess a company's valuation, providing a forward-looking perspective
on its stock price.
26. PS Premium vs Sector:
 Definition: Similar to the above, this compares a company's PS ratio to the average PS ratio within its sector, helping investors assess its
valuation relative to its sector.

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