Price/book value: related pages
NAV
The total value of a company’s assets less the total value of its liabilities, divided by the number of shares in issue.
Trading comps (comparables)
Valuation ratios when used to value a company by comparison with listed peers.
Valuation ratios
A measure of how expensive a share is obtained by dividing a measure of cost against a measure of value or profits.
PE ratio
Share price divided by earnings per share.
PEG
PE ratio divided percentage annual growth in earnings per share.
EV/EBITDA
Enterprise value divided by earnings before interest tax depreciation and amortisation.
EV/sales
Enterprise value ÷ sales.
Price/cashflow
Share price ÷ (cash flow ÷ no of shares in issue).
Price/sales
market cap ÷ sales.
Sum of parts valuation
The valuation of a company by separately valuing different parts of it so different valuation methods or ratios can be applied to disparate businesses.
Copyright Graeme Pietersz © 2005-2019