# Valuation Ratios

<table><thead><tr><th width="94">Code</th><th width="173">Data field</th><th>Description and Calculation</th><th>Meaning and Applications</th></tr></thead><tbody><tr><td><strong>F5.50</strong></td><td><strong>Basic P/E</strong></td><td>Basic P/E is calculated as Closing Price (F6.1) divided by Basic EPS (F5.10)</td><td><p>P/E is the ratio between the market price of a stock and the earnings it brings, showing the price that investors are willing to pay for the earnings of that stock.</p><p>The P/E also reflects the market's expectations for the stock's future growth.</p></td></tr><tr><td><strong>F5.51</strong></td><td><strong>Diluted P/E</strong></td><td>Diluted P/E is calculated as Closing Price (F6.1) divided by diluted EPS (F5.11)    </td><td></td></tr><tr><td><strong>F5.54</strong></td><td><strong>P/B</strong></td><td>P/B = Closing price (F6.1) / Book value (F5.3)</td><td>P/B shows the relationship between market value and book value of a stock. The P/B ratio is only really useful when looking at corporations with a high level of capital concentration or financial companies because the assets of these companies are relatively large</td></tr><tr><td><strong>F5.55</strong></td><td><strong>P/Sales</strong></td><td>P/Sales = Closing price (F6.1) / Sales per share (F5.4)</td><td></td></tr><tr><td><strong>F5.57</strong></td><td><strong>P/Cash Flow</strong></td><td>P/Cash Flow = Closing Price (F6.1) / Cash Flow Per Share (F5.6)</td><td></td></tr><tr><td><strong>1/F5.46</strong></td><td><strong>Market Cap/Sales</strong></td><td>Market capitalization/Sales = Market capitalization (F5.7)/ Net sales for the last 4 quarters or year (F2.94)</td><td></td></tr><tr><td><strong>F5.59</strong></td><td><strong>EV/EBITDA</strong></td><td>EV/EBITDA = Enterprise Value (F5.8) / EBITDA (F5.152)</td><td>The EV/EBITDA index, which can be understood as the PE index, is often used to compare companies in the electricity sector. EV/EBITDA allows a more complete reflection of the PE ratio of operating cash flows in the company and does not depend on the capital structure of the company.</td></tr><tr><td><strong>F5.60</strong></td><td><strong>EV/EBIT</strong></td><td>EV/EBIT = Enterprise Value (F5.8) / EBIT (F5.153)</td><td></td></tr></tbody></table>


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