Definition of «valuation measures»

Valuation measures refer to methods used by investors, analysts and other market participants to determine the value or worth of a company's stock. These measures can provide insight into a company’s financial health, growth potential, profitability, and overall attractiveness as an investment. Some common valuation measures include price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and enterprise value-to-EBITDA (EV/EBIDTA). These ratios compare a company's stock price or market value to its earnings, book value, or cash flow to help determine if the stock is overvalued, undervalued, or fairly valued.

Sentences with «valuation measures»

  • When you look back on this moment in history, remember that spectacular extremes in reliable valuation measures already told you how the story would end. (hussmanfunds.com)
  • As a reminder, the table below compares the historical reliability of a variety of alternative valuation measures in data from 1950 - 2017. (hussmanfunds.com)
  • Looking at other valuation measures, the group of passing companies is priced more richly than the typical exchange - listed stock. (aaii.com)
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