Stock values usually expressed in the term of Ratio to measure the potential risk and return of that stock.
Here are several ratios that are most commonly used by investors:
- working capital ratios
Calculated by dividing total curent assets with total current liabilities
- Quick ratio
Calculated by (Assets - Inventories) / Liabilities
- Earning per stock
Calcualted by dividing net income with average stock issued by the company in that year
