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As an investor, which ratios would be of greatest concern to you, and why?


As an investor, which ratios would be of greatest concern to you, and why?

I stick with the lower price/earning ratios,(below10). Secondly, I go for the low PEGs-- which are the P/E number divided by the precent growth; should be below 1.00
Dividends are important if you are approaching retirement.

If you are young and aggressive go for high % sales gains companies.

how much money does it makes

PE - to see how cheap the stock is
and
Return-on-capital (or return-on-equity) - to see what kind of return the commpany makes on the capital it invests in its business.

These are the 2 most important metrics from "The Little Book that Beats the Market"

You can see a portfolio of these stocks here:

http://www.top10traders.com/ViewPortfoli...

This is from http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks with $100,000 in "play" money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas.

Here are this month's best traders:

http://www.top10traders.com/Top10Standin...

Hope this helps.

The dividend yield %, which tell you how much you stand to receive every year and the price/earnings ratio, which tells you how much you are paying for the earnings of the company. These are the two ratios shown in the newspapers, which indicates they are the ones investors consider the most important.

There are many other useful ratios such as cash flow per share, sales value per share, price/ book value ratio, debt/equity ratio etc. But the more factors and ratios you consider the more complicated and difficult your assessment will be.

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