What is Present Value? Definition: Present value also known as discounted value. It is the financial formula which calculates the worth of received amount on a future that in today’s dollars. On the base of the time value of money principle this concept work. It dictates that the worth of today’s 1 dollar is more […]
Preferred Dividend Coverage ratio is used to calculate the ability of the company to pay the dividend to its preferred shareholders on the base of the net income of the company. In other words, this ratio is used by the investors to find the efficiency of the company by comparing profit to the preferred dividend. […]
PEG is known as Price Earning to Growth. This ratio is used to calculate the stock-based value on the current earning and the company’s potential future growth. Definition: What is the Price/Earnings to Growth Ratio? You can consider this as an improved P/E ratio because it factors in the growth of the company by dividing […]
Price Earning P/E Ratio Price earning ratio is known as P/E ratio or price to earnings ratio. By comparing the marketing price per share by earnings per share, this ratio used to calculate the market value of the stock relative to its earnings per share. By predicting the future price per share investors evaluate the […]
Price to Book Ratio Price to book ratio also known as P/B ratio or market to book ratio. It is the financial valuation tool which is used to evaluate the stock of the company whether it is overvalued or under value by comparing the all outstanding share price with the company’s net assets. In other words […]