Question

Help with valuation analysis.

Price to Book	Company A	1.02
	Company B	1.37
	Company C	1.90
	Industry Average	3.16
Price to Sales	Company A	0.1
	Company B	0.15
	Company C	0.21
	Industry Average	0.97
Price to Cash Flow	Company A	5.00
	Company B	6.30
	Company C	8.50
	Industry Average	14.7
Beta	Company A	1.76
	Company B	1.34
	Company C	1.24
	Industry Average	1.02

Use and analyze the table above and make a conclusion about Company A's performance compared to Company B and Company C (including the Industry avg too)

Thanks in advance

Answer 1

Price to Book

P/B means the comparison of book value of company and the market value of the company.

Here the company “C”is at the best position as this company has the max of P/B ratio.

Price to Sales

Price to sales ratio means that it is a measure of the value investors are receiving from a company's stock by indicating how much are they are paying for the stock per dollar of the company's sales.

Here also company “C” is at the best.

Price to Cash Flow

This ratio is used to measure the company market value as compared to the company cash flow

Here Company “C” is at the best.

Beta

This measure the overall risk in the stock market

Here also company “C” is at the best