Learn how to calculate the market value of equity—find the total dollar value by multiplying the current share price by outstanding shares and understand its importance.

Investors often lean into valuation ratios to determine what a company’s stock is worth. Why? Such ratios are easy to calculate and easy to find. Price/earnings ratio: A stock’s price divided by the ...

In value investing, it is a common practice to pick stocks that are cheap but fundamentally strong. There are a number of investment styles to cater to investors looking for the best value stocks.

Among the valuation metrics, price-to-earnings (P/E) and price-to-sales (P/S) are more commonly used for stock selection. This is because calculations based on earnings and, to some extent, sales are ...