Stocks / XXXX
The P/E ratio shows how much investors are willing to pay for $1 of a company’s earnings. It helps assess if a stock is over- or under-valued based on its earnings performance.
The P/S ratio compares a company’s stock price to its sales per share. It’s useful for evaluating growth companies that may not yet be profitable but are growing revenue.
The Price-to-Book (P/B) ratio compares a company's market value to its book value (assets minus liabilities). It helps investors see if a stock is trading below or above its actual net worth.