---
title: "Valuation and Valuation Ratios Defined"
slug: "valuation-and-valuation-ratios-defined"
description: "Maximize your investment insights with Pattern Finder’s comprehensive valuation metrics. Understand the significance of key financial ratios, such as Market Cap and Enterprise Value, to evaluate a company's size and capital structure. Dive into pricing metrics like Price to Sales, Price to Earnings, and Price to Book to assess stock valuation against industry standards and the broader market. Compare earnings potential with Price to Earnings Growth Ratio (PEG) and analyze cash flow efficiency using Price to Free Cash Flow and EV to FCF ratios. This guide helps you navigate the metrics that matter for informed trading decisions, enhancing your financial analysis capabilities."
tags: ["Market Cap", "Enterprise Value", "Price to Sales Ratio", "Price to Earnings Ratio", "Price to Book Ratio", "Price to Free Cash Flow", "EV to FCF Ratio", "Valuation Metrics", "Stock Valuation", "Fundamental Analysis", "Technical Analysis"]
updated: 2024-08-02T21:38:36Z
published: 2024-08-02T21:38:36Z
canonical: "patternfinderhelp.cmlviz.com/valuation-and-valuation-ratios-defined"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://patternfinderhelp.cmlviz.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Valuation and Valuation Ratios Defined

| Metric Name | Short Name | Definition |
| --- | --- | --- |
| Market Cap ($Millions) | MktCap ($M) | The current market cap. |
| Enterprise Value ($Millions) | EV ($M) | The current enterprise value, which is market cap minus net debt. |
| Price to Sales | P:S | The company's market cap divided by its annual revenue. |
| Current Year Forward Price to Sales | PS Current Year | The price to sales ratio using consensus estimates for current year revenue. |
| Next Year Forward Price to Sales | NextYearP:S | The price to sales ratio using consensus estimates for the next year's revenue. |
| Current Price to Earnings | P:E | Current price to earnings ratio |
| Current Year Forward Price to Earnings | P:Curr Yr Earnings | Current fiscal year forward price to earnings ratio. |
| Current Price to Earnings Compared to the S&P 500 | PE:SP500PE | The price to earnings ratio of the company compared to the S&P 500 using consensus estimates for current year EPS. |
| Price to Earnings as a Percentile to Overall Market | PEpercentileMkt | The comparison percentile rank, between 1 and 100, of the company's price to earnings ratio compared to the entire market, where 1 is the lowest number and 100 is the highest. |
| Price to Earnings as a Percentile to Industry | PEpercentileInd | The comparison percentile rank, between 1 and 100, of the company's price to earnings ratio compared to the company's industry, where 1 is the lowest number and 100 is the highest. |
| Price to Earnings Growth Ratio | PEG | The trailing PEGRatio is the PERatio divided by the annual trailing EPS growth rate as of the most recently reported quarter. |
| Price To Book | P:Book | The latest closing price divided by the latest book value per share (TTM). Exchange Traded Fund (ETF): Returns the fund weighted average ratio of prices of a fund's stocks to the book value of underlying stocks. Aggregate prices are scaled by the sum of individual book values. Closed-End Fund (CEF): Returns the market capitalization weighted average price/book ratio for the securities in the fund's portfolio. |
| Price To Free Cash Flow | P:FCF | Returns price to free cash flow ratio. |
| EV to FCF | EV:FCF | Returns enterprise value to free cash flow ratio. |