Growth and Valuation Ratios Flashcards
1
Q
Sales Growth
A
- The change in a company’s sales over a period of time, usually year-over-year.
- It is an important measure of a company’s growth and is often used to compare the performance of a company to its peers.
2
Q
Operating Income Growth
A
- The change in a company’s operating income over a period of time, usually year-over- year.
- It is an important measure of a company’s profitability and is often used to compare the performance of a company to its peers.
3
Q
Net Income Growth
A
- The change in a company’s net income over a period of time, usually year-over-year.
- It is an important measure of a company’s financial performance and is often used to compare the performance of a company to its peers.
4
Q
Enterprise Value
A
- The total value of a company, including both its debt and equity.
- It is an important measure of a company’s value and is often used to compare the performance of a company to its peers.
5
Q
Enterprise Value
A
- The total value of a company, including both its debt and equity.
- It is an important measure of a company’s value and is often used to compare the performance of a company to its peers.
6
Q
Enterprise Value Multiple (EBITDA)
A
- A company’s enterprise value divided by its EBITDA.
- It is an important measure of a company’s valuation and is often used to compare the performance of a company to its peers.
7
Q
Enterprise Value Multiple (Sales)
A
- A company’s enterprise value divided by its sales.
- It is an important measure of a company’s valuation and is often used to compare the performance of a company to its peers.
8
Q
Price-to-Earnings Ratio (P/E)
A
- A company’s current stock price in relation to its earnings per share.
- It is an important measure of a company’s valuation and is often used to compare the performance of a company to its peers.
- A high P/E ratio may indicate that a company is overvalued, while a low P/E ratio may indicate that it is undervalued.
