Tuesday 8 January 2019

Investment Valuation Ratio (IVR) | Types

An Investment Valuation Ratio or also call the Assessment Ratio is the ratio of Investments use to top rate stocks from a company. This Valuation ratio is quite popular and widely use by investors to determine his decision in investing in the stock market because they can clearly give an overview about the relationship between the cost of investment with the benefits that he obtain. With this Investment Valuation Ratios, investors can determine whether a company's stock "expensive" or "cheap".
Investment Valuation Ratio (IVR)

The types of Investment Valuation Ratio

There are several types of commonly use Valuation Ratios to assess the "value" of a company, including the Dividend Yield, the Price to Earnings Ratio (PER), Price to Sales Ratio (PSR), Price to Book Value Ratio (PBVR) and Price Cash Flow Ratio (PCFR) .

Dividend Yield

Dividend Yield or Dividend Yield Ratio is a ratio that compares the amount of investment valuation cash dividend distribute to shareholders with a stock price (Dividend per Share/Market Value per Share). A Dividend Yield that is usually represent by a percentage (%). It is often use to calculate the cash (cash) they get from the results of their investments in stocks. With this Dividend Yield, investors can find out how much the dividend would they get on each dollar they invest in a stock.

Price to Earnings Ratio (PER)

The price to Earnings Ratio or often abbreviate with PER (p/e Ratio) is the investment valuation ratios compare. The price per sheet stock companies today with earnings per shares (Price per Share/Earning per Share). By calculating p/e Ratio or Price Earnings Ratio, we can figure out how big the price paid by the market want to against the income or profits of an enterprise. Price to Earnings Ratio is often call the price ratio against income.

Price to Sales Ratio (PSR)

The price to Sales Ratio (PSR or the P/S Ratio) is a valuation ratio that compares stock price investment company with its annual sales (Price per share/Revenue per share). The same as the Price to Earnings Ratio (PER) and Price/Earnings to Growth Ratio (PEG), Price to Sales Ratio (PSR) is typically also use to measure the value of the shares of a company. In the language of Indonesia, Price to Sales Ratio is often also call the price ratio against sales.

Price to Book Value Ratio (PBVR)

The Price to Book Value (PBV) is the ratio of the valuation of investments that are often use by investors. To compare the market value of shares of the company with the value of his book. PBV ratio indicates how many shareholders who fund the net asset of the company. This ratio helps investors to compare the market value or stock prices. They pay per share with the size of the traditional values of a company. Price to Book Value Ratio is refer to as the ratio of the price of the book.

Price to Cash Flow Ratio (PCFR)

The Price to Cash Flow Ratio (PCFR or P/CF Ratio) is the ratio of the investment valuation. Which compares the share price of a company with the cash flow of the company. In other words, Price to Cash Flow Ratio indicates the amount of money payable by investors. To the cash flow generate by the company. Price Cash Flow Ratio is often refer to as the ratio of the price against the cash flow.

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