Price and Value: A Guide to Equity Market Valuation Metrics

© George Calhoun 2020

G. CalhounPrice and Valuehttps://doi.org/10.1007/978-1-4842-5552-0_3

3. Valuation Ratios

George Calhoun¹ 

(1)

Jersey City, NJ, USA

 

The market ratios commonly used for enterprise valuation include the following (Table 3-1).

Table 3-1

Valuation Ratio Characteristics

3.1 Trailing P/E, or P/E_ttm

The Trailing Price/Earnings ratio is the original market valuation metric:¹

Price (P) refers to the current market price of the company’s shares.²

Earnings-per-share_ttm (E) is a ratio of the “Earnings” reported by the company in the prior year to the ...