Cheap stocks aren’t always bargains; 5 valuation ratios every investor must track
Different sectors use different valuation metrics because business models vary. Investors therefore need to understand not just valuation multiples, but the logic behind them. P/E multiple, PEG ratio, P/S ratio, price-to-book value, EV/Ebitda are some commonly used relative valuation metrics.
Different sectors use different valuation metrics because business models vary. Investors therefore need to understand not just valuation multiples, but the logic behind them. P/E multiple, PEG ratio, P/S ratio, price-to-book value, EV/Ebitda are some commonly used relative valuation metrics.
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