Valuation filters What it means
P/EThe price of a stock divided by the trailing 12-month earnings per share. Suggests the premium (price) paid by the market for a rupee of earnings. A higher PE typically suggests that a stock is trading at a premium to peers or its own history. PE can also be based on future earnings.
P/BThe price of a stock divided by the book value per share. Suggests the premium (price) paid by the market for a rupee of the company's assets net of liabilities. A relatively higher ratio indicates premium valuations.
Dividend YieldTotal dividend per share divided by the price per share. It suggests the returns from the company in the form of dividend, for a given price. A higher yield suggests superior returns at a given market price.
EV/EBITDARatio of a company’s Enterprise Value (Total Market cap of the company + Total Debt - Cash and Cash Equivalents) to its operating profits. A valuation ratio that suggests the number of times a firm is valued on its operating profits.
Mcap/SalesThe number of times a stock is traded in relation to its net sales. A relatively higher ratio indicates premium valuations.