P/E Ratio Definition

What is P/E Ratio? P/E Ratio is one of the most common valuation metric used to identify stocks attractively priced for investment. As the name implies, the Price/Earnings Ratio is simply the price of the stock divided by the earnings per share as … [Read more]

Interest Coverage

Interest coverage ratio measures a company's ability to pay the interest on its outstanding debt. A high ratio means that the company will have no trouble paying the interest expense, while a low ratio indicates a potential default on the loan … [Read more]

17 Key Financial Ratios to Pay Attention To

Financial ratios allow an analyst to quickly analyze a business and its operations and understand the financial situation of a company. These ratios answer many different kinds of questions that can be asked about a business performance. Normally, … [Read more]

Easy Way to Understand Value Investing

Value investing as an investment practice was popularized by Benjamin Graham and David Dodd in their 1934 classic treatise "Security Analysis". The idea itself rests on a very simple premise: Stock prices tend to differ from the intrinsic value of … [Read more]

What is Book Value Per Share

What is Book Value per Share Book value per share is simply (Common Stockholder's Equity / Number of Shares of Common Stock) If there are no preferred shares outstanding, Total Stockholder's Equity can be used in place of Common Stockholder's … [Read more]