What are some common financial ratios to analyze stocks

[AidenTurner]

What are some common financial ratios to analyze stocks

[VeraGomez]

Sure! Here are eight common financial ratios you can use to analyze stocks:

[IslaAvila]

**Price-to-Earnings (P/E) Ratio**: This one compares a company’s current share price to its earnings per share. It helps you see if a stock is over or under-valued.

[DavionBowman]

**Price-to-Book (P/B) Ratio**: This ratio compares the market value of a company’s stock to its book value. It’s useful for figuring out if a stock is priced fairly based on its assets.

[AdelinaMorales]

**Debt-to-Equity (D/E) Ratio**: This measures a company’s financial leverage by comparing its total liabilities to its shareholders' equity. A high ratio might mean more risk.

[ThaddeusFinley]

**Return on Equity (ROE)**: This shows how effectively a company uses its equity to generate profit. A higher ROE indicates a more efficient company.

[KamilaZamora]

**Current Ratio**: This one assesses a company’s ability to pay its short-term liabilities with its short-term assets. A ratio above 1 is generally considered good.

[MckennaRussell]

**Dividend Yield**: This ratio shows how much a company pays in dividends each year relative to its stock price. It’s great for income-focused investors.

[RubenJarvis]

**Price-to-Sales (P/S) Ratio**: This compares a company’s stock price to its revenues per share. It can be helpful for evaluating companies that aren’t profitable yet.