Interpretations of market based ratio''s, Financial Management

Market based Ratio's

 

PE:           The Price-to-Earnings ratio is calculated by market price per share to earnings per share and is expressed in terms of times. It shows how many times earning per share are covered by its market price. The analysis of this ratio is very important for financial forecasting. Higher number always stands for company's overall success.

 

P/BV:       The Price-to-Book Value ratio is calculated by market price per share to book value per share and is expressed in terms of times. It shows how many times earning per share are covered by its book value per share.

 

DY:          The Dividend Yield Ratio indicates the rate of dividend received by the shareholders not on the face value of shares but on the market price of the shares. This ratio is very much useful to the new investor of the company.

 

 

Posted Date: 7/26/2012 3:58:48 AM | Location : United States







Related Discussions:- Interpretations of market based ratio''s, Assignment Help, Ask Question on Interpretations of market based ratio''s, Get Answer, Expert's Help, Interpretations of market based ratio''s Discussions

Write discussion on Interpretations of market based ratio''s
Your posts are moderated
Related Questions
The price volatility properties of bonds with the help of the graph of the price/yield relationship. Let us now, with the help of a graph, illustrate how duration estim

Government securities are the most important and unique financial instruments in the financial markets of any economy. Government of India Securities (GOI Sec) in

Q. What is Translation risk? This risk occurs on consolidation of financial statements prior to reporting financial results and for this reason is as well known as accounting e

After the bid Tactics can be undertaken by directors to ensure that their shareholders don't accept the bid, if that is what they desire. Reject Share

Issuing Procedure Treasury bills are sold using the auction procedure. The Treasury entertains both competitive and non-competitive tenders for T-Bills. Government securities f

Who owns a credit union? Explain. Credit unions are owned by their members.  When credit union members place money in their credit union, they aren't technically "depositing"

Q. Just-in-time inventory management processes? Just-in-time (JIT) inventory management processes seek to eliminate any waste that arises in the manufacturing process as a resu

• Prepare a Trend Analysis for the Balance Sheet, Income Statement and Cash Flow Statement • This should include about 12 accounts in the Balance Sheet and about 10 Income Statemen

How has the merger activity in the past decade affected the concentration of assets in the banking industry? A: Over the last decade, some commercial banks declined by twenty-o

Role of Custodians The Securities and Exchange Board of India on 5th May, 1996, through its notification No.S.O.344 (E) has issued the SEBI (Custodian of Securities) Regulation