Ratio Name

Quick Description

Formula

Quick Report

Book value per share 
The idea behind book value per share is that if a company's calculated book value per share is higher than the current stock price, the company is undervalued (or vice versa) 
To calculated book value per preferred share: (Share capital of preferred and common stock + contributed surplus + retained earnings) / number of preferred shares outstanding.
To calculate book value per common share: (share capital of common stock + contributed surplus + retained earnings) / number of common shares outstanding

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Debt to equity ratio 
The two most basic sources of funds for a company are debt and equity. Debt and equity both have unique characteristics and the relationship between these two sources is widely used to evaluate the financial strength of a business. 
Debt to equity = Total liabilities / Owner's equity 
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EPS rank 
EPS rank (earnings per share rank) is a measurement of a company's EPS growth (and stability of that growth) over the last five years. 
To calculate the EPS rank of a company, take the percent change in the last two quarters earnings, versus the same quarters of the previous year, combine and average with the 5 year data. 
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Price to book ratio (P/B) 
This is a ratio between current market price and the companies book value. 
P/B = Last close / Book value per share. 
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Price to cash flow (P/CF) 
This valuation focuses on the amount of cash a company can pay to its shareholders in the form of a dividend. 
To calculate pricetocashflow ratio, take the stock price and divide by the last reported yearly cash flow. 
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Price to dividend (P/D) 
Price to dividend ratio is typically used as a general guide to determine whether an issue is overvalued or undervalued. A price to dividend ratio is the reciprocal of dividend yield. 
Dividend ratio = current market price per share / dividend 
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Price to earnings (P/E) 
P/E is a ratio of the stocks price and the stocks earnings per share. 
To calculate a P/E, take the price of the stock and divide it by it's earning per share. 
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Price to sales ratio (P/S) 
Price to sales ratio is a lessused type of fundamental valuation indicator. This valuation focuses on total revenue. 
To calculate this ratio, take the stock price and divide by the last 12 months revenue/share (12 month revenue per share is calculated by the last 12 month revenue combined divided by total number of shares outstanding). 
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Times interest earned 
Times interest earned is a ratio which measures the amount of times interest payments can be covered by income before taxes. 
Times interest earned = (Income before taxes + interest) / Interest charges 
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