What are PE, PB and EPS?

Earnings yield is defined as EPS divided by the stock price (E/P). In other words, it is the reciprocal of the P/E ratio. Thus, Earnings Yield = EPS / Price = 1 / (P/E Ratio), expressed as a percentage. read more

A low PE ratio can interpreted as an undervalued stock or market participants are not bullish on the companys future growth. PE Formula : Market value per share / Earnings per share(EPS). P/B - Price to book ratio, generally ratio used to compare a stock market value to its book value. read more

This ratio tries to tell what the market is willing to pay per to receive portion of company’s earnings per share, thus indicating the value of share in the market. P/E is calculated as = Market Value per Share / Earnings per Share. Price to Book value is computed to compare the value of the company in the market to the book value of the firm. read more