Healy, Paul M., Krishna G. Palepu, and Jonathan Barnett. "Valuation Ratios in the Airline Industry." Harvard Business School Case 103-002, April 2003. (Revised May 2003.) ...
A company with slow-growing or very volatile profits should trade on a low p/e ratio, whereas one that can keep growing at a much faster rate merits a higher valuation. However, deciding exactly ...
Comparative ratios using EV—such as a comparison of EV to earnings before interest and taxes (EBIT)—demonstrate how EV works better than market cap for assessing a company's value ...
The price-to-earnings ratio (P/E) is among the most important and commonly used valuation metrics in the fundamental analysis of stocks. It is also referred to as the price multiple, or the ...
Understanding P/E ratios is crucial for assessing stock value. Investors use P/E and PEG ratios to compare stocks in similar industries. Consider factors that aren't easily quantified, like a ...
But to really dig down into the valuation of a stock you'll want to understand some key financial ratios to compare the health of a company with its peers, its industry and itself over time.