Metric

What it compares

Primary use

Price-to-sales (P/S) ratio

Share price relative to revenue per share

Assessing companies with negative or volatile earnings

Price-to-book (P/B) ratio

Market value relative to book value (assets minus liabilities)

Reviewing asset-heavy businesses (like banks)

Enterprise value-to-EBITDA (EV/EBITDA)

Total company value (including debt) relative to operating earnings

Comparing companies with different debt levels

Price/earnings-to-growth (PEG) ratio

P/E ratio relative to expected earnings growth

Determining if valuation aligns with expected growth