The price to book ratio or P/B ratio is a metric that reflects how the market price reflects the current book value of the business shares. The Price to Book ratio measures the number of times the market price of the company’s shares exceeds the book value of the business. What is the Price to Book
Market Capitalization, or simply market cap, is a measure of how much a company’s current outstanding shares are worth. It is an estimation that employs the current price of a business’ shares to determine the total value of its equity instruments, including both common and preferred shares. What is Market Cap? The market capitalization figure,
The Capital Asset Pricing Model (CAPM) is a mathematic formula that intends to determine the appropriate cost of equity to be employed to discount future cash flows, in order to estimate their present value. It combines different referential rates such as the risk-free rate and the overall market rate, along with risk indicators, to identify
The price earnings ratio, or P/E ratio, measures a company’s share price as compares with its per-share earnings. For example, a Price to Earnings ratio of 10 means that the company has $1 of annual, per-share earnings for every $10 in share price. Earnings by definition are after all taxes, etc. What is the P/E