Lesson
Valuation Ratios Dashboard | Options Educator
P/E, P/B, EV/EBITDA, and PEG explained through quick-reference visual cards.
In this lesson
Essential Valuation Ratios
- P/E shows what you pay per dollar of earnings
- Compare to industry, not absolute values
- Forward P/E uses future expectations
Growth-Adjusted Valuation
- PEG adjusts P/E for growth rate
- PEG < 1.0 often signals undervaluation
- Only works for profitable, growing companies
Enterprise Value Multiples
- EV includes debt and cash
- EV/EBITDA better for comparing companies with different debt
- Professionals prefer EV/EBITDA for M&A analysis
Price-to-Book & Price-to-Sales
- P/B important for asset-heavy industries
- P/S used when companies aren't profitable
- Different industries use different primary ratios
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