Valuation Concepts
A negative book value makes a price-to-book ratio harder to use
A negative book value changes what a price-to-book figure can mean. Check the denominator before sorting stocks by an apparently cheap ratio.
COMPANIES · REPORTS · MARKETS
Valuation Concepts
Valuation Concepts
A missing P/E ratio can be a clue about earnings, not a cheap-share signal
Investigate a blank or unavailable P/E ratio by checking earnings, calculation periods and data-provider definitions before comparing shares.
Valuation Concepts
Market Capitalisation and Enterprise Value Answer Different Questions
Use a fictional company to see why market capitalisation measures equity while enterprise value brings debt and cash into the comparison.