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

Explore

• Learn workspace — your current module and lesson
• Lesson catalog — every structured lesson
• Learning journey — the structured curriculum
• Roadmap — the full learning path
• Simulator — guided practice tied to lessons
• AI assistant — ask a question, get the concept
• Career mode — gamified progression and the open-world trading city