|
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 |