Market Flashcards
(7 cards)
1
Q
PER
A
current market price / earnings per share
or
market capitalization / net income
2
Q
What is PER?
A
how much investors are willing to pay per dollar of earnings
3
Q
Price to Book Value (P/BV)
A
current market price / book value per share (BPS)
or
market capitalization / equity value
4
Q
What is Price to Book Value (P/BV)?
A
how much investors are willing to pay per dollar of net assets of the company
5
Q
EV / EBITDA
A
(market cap + net debt) / EBITDA
6
Q
What is EV / EBITDA?
A
how much investors are willing to pay per dollar of earnings
7
Q
What is the enterprise value formula?
A
market cap + net debt (short and long term debt - cash and cash equivalents)
