Market Value Ratios

Market Value Ratios definition-


Market value ratios are used to evaluate the share price of a company’s stock.

Dividend Yield Ratio


financial ratio that shows the percentage of a company's annual dividend payments relative to its stock price. It's commonly used by investors to gauge how much income they can expect to receive from owning a stock, expressed as a percentage.

• Measures the amount of dividends attributed to shareholders relative to the market value per share

• shows how much a company pays out in dividends each year relative to its stock price.

measures the quantum of cash dividends paid out to shareholders relative to the market value per share

FORMULA:

= Dividend per share / share price

Price-earnings Ratio


Compares a company’s share price to its earnings per share (EPS), indicating how much investors are willing to pay for each euro of earnings.

• a way to value a company by comparing the price of a stock to its earnings. The P/E equals the price of a share of stock, divided by the company's earnings-per-share. It tells you how much you are paying for each dollar of earnings.

FORMULA:

= Share price / Earnings per share

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