Individual Stocks

Price / Earnings Ratios and Other Calculations

What are some of the most important metrics that measure the health or performance of a company, and ultimately its stock price?

When we look at different companies, there are certain performance measures, or metrics, that help us understand the relative health of the company in order for us to gauge the risk of such an investment. Many experts look at several important metrics, including: Price/Earnings (PE) Ratio, Price-to-Book (P/B) Ratio, Debt-to-Equity (D/E) Ratio, Free Cash Flow (FCF), and Price/Earnings-to-Growth (PEG) Ratio.

Close

This is a web preview of the "The Handy Investing Answer Book" app. Many features only work on your mobile device. If you like what you see, we hope you will consider buying. Get the App