Author: Andrew Smith
Capital Market Analysis Ratios
Price Earnings (PE) Ratio
Market Price of Common Stock Per Share
Price Earnings Ratio =
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Earnings Per Share
Market to Book Ratio
Market Price of Common Stock Per Share
Market to Book Ratio =
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Book Value of Equity Per Common Share
Book Value of Equity Per Common Share
= Book Value of Equity for Common Stock / Number of Common Shares
Dividend Yield
Annual Dividends Per Common Share
Dividend Yield =
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Market Price of Common Stock Per Share
Book Value of Equity Per Common Share
= Book Value of Equity for Common Stock / Number of Common Shares
Dividend Payout Ratio
Cash Dividends
Dividend Payout Ratio =
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Net Income