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What is a market ratio?

Updated: 9/20/2023
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12y ago

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Market Ratios are useful in measuring investor response to owning a company's shares and also the cost of issuing shares to the public. Almost all of these ratios can be used to take decisions as to whether we should invest in a company's stock or not. The ratios that fall under this category are:

1. Earnings Per Share (EPS)

2. Payout Ratio

3. Dividend Cover

4. P/E Ratio

5. Dividend Yield

6. Cash Flow Ratio

7. Price to Book Value Ratio (P/B or PBV)

8. Price to Sales Ratio

9. PEG Ratio

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