Contrarian Ratios

Price to Earnings

Current share price relative to its per-share earnings

Per-share earnings: \(\frac{\text{Net Income} - \text{Preferred Dividends Paid}}{\text{Number of Outstanding Stock}}\)

Preferred dividends are removed from net income because that money is not available to common stock holders.

  • Price to Bookvalue
  • Price to Cashflow

Financial Statement Analysis

Martin S. Fridson : Financial Statement Analysis