Chapter 1: Ratios

 

Price-to-Earnings ratio (P/E):

• P/E ratio is calculated by dividing the market price per share (P) by the earnings per share (EPS), in short ki kitne rupay lagane pad rahe hain har ek rupay kamane ke liye. 
• The lower the better

Price-to-Book ratio (P/B):

• P/B ratio is calculated by dividing the market price per share (P) by the book value per share (BVPS), in short har rupay ke assets ke liye kitna paisa mil raha hai stock ke price mein. 
• the lower the better

Return on Equity (ROE):

• ROE is calculated by dividing net income (NI) by shareholders' equity (SE), in short company ke shareholders ke lagaye hue paise par kitna profit kamaya ja raha hai. 
• the higher the better

Debt-to-Equity Ratio:

• Debt-to-Equity Ratio measures the proportion of a company's debt to its equity, in short Company ki debt aur shareholders ke paisa ka ratio. 
• the lower the better

Net Margin:

• Net Margin measures the percentage of revenue that remains as net income after all expenses are deducted, in short Company ki kamai ka hissa jo bachta hai sare kharcha katne ke baad. 
• the higher the better

Dividend:

• Dividend represents the portion of a company's earnings that is distributed to its shareholders, in short Company ke kamai ka hissa jo shareholders ko diya jata hai. 
• the higher the better

PEG Ratio:

• Company's growth rate compared to its stock's valuation, in short Company ki growth ka hisaab stocks ke price see. 
• the lower the better