Ratios

·         Debt to Capital (MRQ) - The debt-to-capital ratio is calculated by taking the company's interest-bearing debt, both short- and long-term liabilities and dividing it by the total capital. Total capital is all interest-bearing debt plus shareholders' equity, which may include items such as common stock, preferred stock, and minority interest. Jul 12, 2020

What is a good debt to capital ratio? - 1 to 1.5

The ideal debt to equity ratio will vary depending on the industry because some industries use more debt financing than others. Capital-intensive industries like the financial and manufacturing industries often have higher ratios that can be greater than 2. Oct 3, 2019

Debt to Equity Ratio, Demystified - HubSpot Blog

·         P/E Ratio (TTM, GAAP) The P/E ratio stands for Share Price divided by Earnings Per Share (EPS). The (ttm) Trailing Twelve Months means the last 12 months of EPS are used in the calculation. Oct 1, 2014 Indicates the dollar amount an investor can expect to invest in a company in order to receive one dollar of that company's earnings. Therefore the P/E is sometimes referred to as the price multiple because it shows how much investors are willing to pay per dollar of earnings

What is a good PE ratio for a stock? - LOWER

A higher P/E ratio shows that investors are willing to pay a higher share price today because of growth expectations in the future. The average P/E for the S&P 500 has historically ranged from 13 to 15. If a company has a high P/E, investors are paying a higher price for the stock compared to its earnings. However, a stock with a high P/E ratio is not necessarily a better investment than one with a lower P/E ratio, as a high P/E ratio can indicate that the stock is being overvalued.

For example, a company with a current P/E of 25, above the S&P average, trades at 25 times earnings. i.e. investors are willing to pay $25 for every dollar of company earnings Mar 16, 2020

Buffett looks for companies that provide a good return on equity over many years, particularly when compared to rival companies in the same industry.

·         Price to Earnings Growth. The 'PEG ratio' (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company's expected growth. In general, the P/E ratio is higher for a company with a higher growth rate

What is a good price to earnings growth ratio? - <1

In theory, a PEG = 1 represents a perfect correlation between the company's market value and its projected earnings growth. PEG > 1 are a stock is overvalued. Jun 24, 2019

·         Price to Book (MRQ) Most Recent Quarter or P/B ratio, is dividing a company's stock price by its book value per share, which is defined as its total assets minus any liabilities. Low P/B ratios can be indicative of undervalued stocks, and can be useful when conducting a thorough analysis of a stock

What is a good price to book ratio? <1

Traditionally, any value under 1.0 is considered a good P/B value, indicating a potentially undervalued stock. However, value investors often consider stocks with a P/B value under 3.0.Mar 20, 2020

·         Price to Sales (TTM) Trailing 12 months The price-to-sales ratio (Price/Sales or P/S) is a company's market capitalization (the number of outstanding shares multiplied by the share price) and divide it by the company's total sales or revenue over the past 12 months. May 22, 2019

What is a good price to sales? – <1 or 1-2

Price-to-sales (P/S) ratios between 1 and 2 are generally considered good, while a P/S ratio of less than one is considered excellent. As with all equity valuation metrics, P/S ratios can vary significantly between industries. Jul 13, 2020

·         Price to Cash Flow (TTM) The price-to-cash flow (P/CF) ratio is a stock valuation indicator or multiple that measures the value of a stock's price relative to its operating cash flow per share. The ratio uses operating cash flow which adds back non-cash expenses such as depreciation and amortization to net income. Jun 23, 2019

What is a good price to cash ratio? – LOW <15 or 20

Also like a P/E ratio, the lower the number, the better. Currently, the average Price to Cash Flow (P/CF) for the stocks in the S&P 500 is 14.05. But just like the P/E ratio, a value of less than 15 to 20 is generally considered good. Feb 18, 2014