Market Ratios are useful in measuring investor response to owning a company's shares and also the cost of issuing shares to the public. Almost all of these ratios can be used to take decisions as to whether we should invest in a company's stock or not. The ratios that fall under this category are:
1. Earnings Per Share (EPS)
2. Payout Ratio
3. Dividend Cover
4. P/E Ratio
5. Dividend Yield
6. Cash Flow Ratio
7. Price to Book Value Ratio (P/B or PBV)
8. Price to Sales Ratio
9. PEG Ratio
Market debt ratio= TL / (TL - Equity) Note : equity with market value .
Price earnings ratio.
The Q ratio is calculated as the market value of a company divided by the replacement value of the firm's assets Tobin's Q ratio
market/book ratio (M/B)
it is a broad concept and final result..... M.E. is simply defined as the ratio between the market output to the market input multiplied by 100. so, ME= market output or satisfaction / market input or cost of resources X 100
Market debt ratio= TL / (TL - Equity) Note : equity with market value .
Price earnings ratio.
The market concentration ratio for perfect competition is Low (Less than 40%).
what is market to book ratios used for?
The quantity of product(farm product) that is keep by the farmer and they do not sell this in the market is called market surplus ratio.
The bonds are traded in the market because of the P/E ratio of a company.
The Q ratio is calculated as the market value of a company divided by the replacement value of the firm's assets Tobin's Q ratio
The Price to Sales Ratio (PSR) is a valuation ratio for stocks that is similar to the EPS ratio we saw earlier in this article. It is used to identify how much of revenue is generated compared to the company's market price.Formula:PSR = Market Capitalization / Total RevenueOrPSR = Current Market Price per Share / Revenue per ShareRevenue per Share = Total Revenue / Total No. of Outstanding Shares
The ratio of the current net market value of open positions held between two counterparties to the current gross market value of positions between the same counterparties.
Market expense to sales ratio is calculated by dividing selling and administrative expenses by total sales. ------------------------ Khairul Alam Institute of Business Administration University of Dhaka
market/book ratio (M/B)
Is the Price/Earnings ratio. You can find it by taking the market price per share and dividing it by the annual earnings per share.