Important Value Investors Metrics

In this article, we outline the five ratios that can help value investors find the most undervalued stocks in the market. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

| Value Investing OTHER METRICS IMPORTANT TO VALUE INVESTORS There are probably as many financial metrics as there are listings on the NYSE and it would be impossible to list them all. We've already gone over the more common ones; here are a few others that value investors find useful, learn more. Price-to-Cash Flow Ratio – P/CF The price-to-cash flow ratio is a stock valuation indicator or multiple that measures the value of a stock's price relative to its operating cash flow per share. Read Now » Price-to-Sales Ratio (P/S Ratio) The price-to-sales (P/S) ratio is a valuation ratio that compares a company's stock price to its revenues. It is an indicator of the value placed on each dollar of a company's sales or revenues. Read Now » Dividend Yield A financial ratio that shows how much a company pays out in dividends each year relative to its share price. Read Now » Graham Number According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in. Read Now » Discounted Cash Flow (DCF) Discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity. Read Now » Earnings Power Value – EPV Earnings power value (EPV) is a technique for valuing stocks by making assumptions about the sustainability of current earnings and the cost of capital. Read Now » Enterprise Multiple Enterprise multiple is a measure (the company's enterprise value divided by its EBITDA) used to calculate the value of a company. Read Now » CONNECT WITH INVESTOPEDIA Email sent to: geezers.mail@gmail.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC, All Rights Reserved | Privacy Policy