11
Investor ratios
This chapter reviews:
- Share values, earnings per share and the price to earnings ratio
- Dividends per share, dividend cover and the pay-out ratio
- Earnings and dividend yields
- Market to book ratio
Introduction
The value of public companies is determined by the stock market. The value of companies not publicly quoted will be greatly influenced by the same market. In this chapter, therefore, we will look at the main stock-market-related ratios.
These are:
- share values (nominal, book and market)
- earnings per share (EPS)
- dividends per share (DPS)
- dividend cover and the pay-out ratio
- earnings yield
- dividend yield
- price to earnings ratio (P/E)
- market to book ratio.
When people talk about the value of a company they mean its market ...
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