Busıness Fınance I Deneme Sınavı Sorusu #1368939

  1. Price-earnings (P/E) ratio
  2. Market value-to-book value (MV/BV) ratio
  3. Price-to-sales ratio
  4. Price-to-cash flows ratio
  5. PEG, defined as the P/E ratio divided by the growth rate of earnings

Which of the above are the common ratios used as comparables in the context of valuation by comparables?


I and II

I, III and IV

II, III and IV

I, III, IV and V

I, II, III, IV and V


Yanıt Açıklaması:

Compared to bonds, there are uncertainties about cash flows of stocks and several assumptions have to be made. It can be assumed that the stocks of similar companies should be priced in a similar way because investors are prepared to pay similar price for each lira of assets or earnings. It is called valuation by comparables. The common ratios used as comparables are price-earnings (P/E) ratio, market value-to-book value (MV/BV) ratio, price-to-sales ratio, price-to-cash flows ratio and PEG, defined as the P/E ratio divided by the growth rate of earnings.

As also understood from the information given, all of the ratios given in the options are the common ratios used as comparables in the context of valuation by comparables, so the correct answer is E.

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