Welcome to the Stock Market Education page!
We’ve made a variety of free content for anyone wanting to learn more about the stock market and on trading stocks.
Stock Market Basics – Stock Market 101
Penny Stocks 101 – Learn About Penny Stocks
Financial Ratios – Investment Ratios
Here are some of the most commonly used financial ratios among stock market investors to help them evaluate stocks.
Earnings Per Share (EPS)
The EPS figure gives investors an idea on the company’s performance and shows how much money a share of stock earned or lost as a result of selling goods and services. This is one of the figures used in calculating a company’s P/E Ratio.
Price-Earnings Ratio (P/E)
Price to Earnings ratio is probably the most commonly used and most well known ratio when it comes to evaluating stocks.
Price/Earnings Growth (PEG) Ratio
The PEG Ratio is similar to the PE Ratio, but it takes it one step further by accounting for future earnings growth.
Price/Cash Flow (P/CF)
Price/cash flow ratio is another investment valuation ratio used by investors to evaluate the attractiveness of investing in a company’s shares.
The P/S reflects how much investors are paying for every dollar in annual sales. Essentially, the P/S number reveals the value placed on sales by the market.
Price-To-Book Value (P/BV)
The Price-To-Book Value ratio compares a stock’s market value to its book value. The P/BV ratio gives an idea on how much the company would be worth if the company was broken up and sold everything off.
The dividend yield is a percentage figure that investors use to determine what a stock pays out to shareholders in dividends.