Financial ratios are useful tools for investors to better analyze financial results and trends over time. These ratios can also be used to provide key indicators of organizational performance ...
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.
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 ...
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 ...
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.
Simply put, the market value of a firm divided by capital invested. Market to Book Ratio seeks to show the value of a company, by comparing the book value and market value. Book value is ...
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.