The P/E ratio helps investors determine the market value of a stock compared with the company’s earnings. It shows what the market is willing to pay for a stock based on its past or future earnings.
However, some growth portfolios outperform the market and end up with much higher Sortino ratios. This formula will make the same assumptions, but the growth portfolio will have a 25% return.
It is possible to end up with a negative Sharpe ratio if your return falls below the risk-free rate. For instance, if a fund had a 2% return over the past year while the market had a 3% risk-free ...
Making informed investment decisions requires a keen eye for detail and a thorough understanding of various financial metrics. One often-overlooked but highly valuable metric is the Price to Sales ...
Put-to-call ratios can be calculated for individual stocks or stock funds, which comprise many different stocks and can be composed to represent an industry within the market or the market at large.