Stocks
Stock Valuation Ratios Explained: P/E, PEG, Price-to-Book and More
Is a stock cheap or expensive? Valuation ratios are the shorthand investors use to answer that, but each one measures something different and each one can mislead. Here is how P/E, forward P/E, PEG, price-to-sales, price-to-book, EV/EBITDA and free cash flow yield work, and when to use which.