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

  1. Earnings per Share
  2. Market Capitalization
  3. Profit Margins
  4. Price/Earnings and Related Ratios
  5. Price/Sales Ratio
  6. Price/Book Ratio
  7. Price/Cash Flow
  8. Dividend Yield

Find out what you have learned