Market Value/Valuation Flashcards
1
Q
Price/Earnings Ratio
A
Price per share /Earnings per share = times
2
Q
Market/Book Ratio
A
Market price per share / Book value per share
3
Q
Rate of Return on Common Equity
(ROE)
A
ROA x Equity Multiplier
-ROA = Net Income/ Total Assets
-Equity Multiplier = Total Assets / Common Equity