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Summary of Using Ratios and Multiples

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Summary of Using Ratios and Multiples

Even if you end up using the more thorough valuation methods highlighted in further studies, it will be highly likely you will use the ratios highlighted in this lesson when discussing stock valuation with other investors. Just remember the limitations of each of these ratios, and keep in mind the context of every situation.

What you have learned

  1. Price/Sales (P/S) Ratios
  2. Price/Book (P/B) Ratios
  3. Price/Earnings (P/E) Ratios
  4. Price/Earnings Growth (PEG) Ratios
  5. Yield-Based Valuation Models
  6. Dividend Yield
  7. Cash Return

Find out what you have learned