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1.
A company's price/sales ratio is its stock price divided by _______.
Sales per share. Since we are using stock price, we must also use sales per share.
2.
A company's market capitalization is calculated by _______.
Multiplying its stock price by the number of shares outstanding. For example, if there are a million shares of stock trading at $10 per share, the market capitalization is $10 million.
3.
A company's gross margin is calculated by dividing _______.
Gross profits by revenues.
4.
Price/book ratio compares what with what?
A stock's market value with its book value. The 'price' part of the formula refers to the stock's market value.
5.
A company's dividend yield is calculated by _______.
Dividing annual dividend per share by stock price per share.
6.
A stock's price/earnings ratio is its price divided by its _______.
Earnings per share. The formula uses earnings per share.
7.
A stock's price/cash flow ratio is calculated by dividing the stock price by the _______.
Operating cash flow per share.
8.
Earnings per share (EPS) is a company's _______.
Net income divided by its number of shares outstanding. EPS uses net income.
