
Summary of Learn the Lingo--Basic Ratios
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Summary of Learn the Lingo--Basic Ratios
The bottom line
We’ve gone over how to calculate a lot of ratios in this lesson, but understanding the components of these ratios is key to learning the lingo of investors. It is also essential in beginning to understand when a stock is cheap or expensive. The good news is that if you invest long enough, the ratios highlighted here will become second nature.
What you have learned
- Earnings per Share
- Market Capitalization
- Profit Margins
- Price/Earnings and Related Ratios
- Price/Sales Ratio
- Price/Book Ratio
- Price/Cash Flow
- Dividend Yield