Profitability Ratio

(a) Pricing multiples P/E price per earnings ratios, P/S market to book rice to dividends. It helps an investor to evaluate the merits of an investment business and an asset of a company so the investor can determine the investments that are most profitable to invest in order to reduce the risks. The method used in valuation analysis is price to earnings (P/E ration). Price /Earnings Price/Book value, Prices/sales Enterprise value (EB, DTA, Economic value Added and Discounted cash flow Price/Book value Ratio
It is a ratio that is used to determine the amount of money the shareholders pays for using the assets of a company. It is also used to determine the number of times the company’s book value per share. Book value of a company is the value of the company assets as on the balance sheet that is Assets less liabilities. Price/Book value Ratio= Stock Price per share Share holders Equity per share Price /Earnings Ratio It is a ratio that is used to determine the number of times stock is traded per dollar of the earning per shares.
The figure is divided by dividing the current stock prices by the earnings per share Price/earnings = stock price per share Earnings per share Price/sales Ratio It is a ratio that is used to measure the price of company’s stock by its annual sales. It determines how many times investors pay for the company’s sales per dollar. Price/sales ratio = Stock price per share Net sales (Revenue) per share Divided Yield The ratio is derived by dividing the company’s annual cash divided per share by the current price per stock.

It is expressed as an annual percentage. Divided yield = Annual Divided per share Stock price per share Discounted cash flow (DCF) This is a valuation method that is used to evaluate an investment opportunity. This method uses future cash flow projection and discounts them using the weighted average cost of capital so as to desire present value of an investment. If its value is higher than the current cost of investment then the investment is good to invest in it.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Use the discount code "30OFFNOW" today and get a 30% offOrder Now