Stock Ratios Calculator
Evaluate stocks like a professional analyst. This tool calculates the most important valuation metrics used to judge if a company's share price is justified by its financial performance.
What is the P/E ratio?
The Price-to-Earnings (P/E) ratio measures a company's current share price relative to its earnings per share (EPS). It is used to determine if a stock is overvalued or undervalued compared to its peers.
How is EPS calculated?
Earnings Per Share (EPS) is calculated as (Net Income - Preferred Dividends) / Average Outstanding Shares. It indicates how much profit a company makes for each share of its stock.
What does the Dividend Payout Ratio mean?
This ratio shows the percentage of earnings a company pays out to shareholders in the form of dividends. A lower ratio may suggest the company is reinvesting more in growth, while a high ratio indicates a commitment to returning cash to investors.
What is the Price-to-Book (P/B) ratio?
The P/B ratio compares a firm's market capitalization to its book value (total assets minus intangible assets and liabilities). It helps investors identify potential bargains in the market.