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115 CFA
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115.040.06.04 Financial Analysis - Reading 24 - 4. Ratios Used in Equity Analysis, Credit Analysis, and Segment Analysis

4. Ratios Used in Equity Analysis, Credit Analysis, and Segment Analysis

e. calculate and interpret ratios used in equity analysis and credit analysis;

f. explain the requirements for segment reporting and calculate and interpret segment ratios;

What is the valuation ratio P/E?
Price-to-earnings = price per share / earnings per share

What is the valuation ratio P/CF?
Price-to-cash-flow = Price per share / cash flow per share

What is the valuation ratio P/S?
Price-to-sales = price per share / sales per share

What is the valuation ratio P/BV?
Price-to-book-value = price per share / book value per share

What is credit analysis?
Credit analysis is the evaluation of credit risk.

What is segment analysis?
Segment analysis is the analysis of the different lines of business or geographic areas of a business.


Source:
  • CFA