Author : Gary McFarlane

What is the price/earnings to growth (PEG) ratio? Although the price/earnings ratio can flag up what could be expensive stocks, it unfortunately does not help…
Read more

What does the EV to EBITDA ratio do? Enterprise value (EV) to earnings before interest, taxes, depreciation and amortisation (EBITDA) is the ratio of the…
Read more

What is the debt-to-enterprise value ratio? This ratio takes total debt and weighs it against enterprise value to show how a company is positioned to…
Read more

What does the debt-to-equity ratio do? This ratio looks at how much debt a company is using to finance its operations. Analysts and shareholders deploy…
Read more

What is the price-to-book ratio? The price-to-book (or market to book) ratio compares a company’s net asset value (shareholders’ equity) against the market value of…
Read more

What does the return-on-equity ratio do? Return-on-equity ratio measures shareholders’ return on investment. Investors use it to determine how well a company is sweating its…
Read more

What is earnings per share? Earnings per share shows what a company is earning in profit for each share issued. Earnings per share quantifies how…
Read more

What does the price-to-earnings ratio do? The price-to-earnings ratio helps investors to decide whether a stock is an expensive or cheap investment. It is calculated…
Read more

What does return on assets do? Return on assets (ROA) – or return on average assets – measures how efficiently a company is using its…
Read more