How to use the PE, PS and PB relationships to value a stock
In a previous article, I discussed the traditional and “textbook” method of valuing a stock, along with some modifications to smooth out the inherent bumps in cash flow levels. In this article, we’ll look at another common way to value a stock, using statistical multiples of a company’s financial metrics, such as earnings, net assets, and sales. Basically, there are […]
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