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#valuation

Return on Equity (ROE): Profitability Metric
Return on equity measures how efficiently a company generates profit from shareholder capital and is one of the most-watched indicators of business quality.

Price-to-Earnings (P/E) Ratio Explained
The price-to-earnings ratio compares stock price to earnings per share and is the most common valuation metric used to judge whether a stock is cheap or expensive.

Price-to-Book (P/B) Ratio for Value Traders
The price-to-book ratio compares a stock's market value to its net asset value, helping value traders spot cheap shares and detect financial stress.

Earnings Per Share (EPS): The Bottom Line
Earnings per share is the most-watched profitability metric, comparing net income to shares outstanding and anchoring valuation ratios like P/E.

Debt-to-Equity Ratio: Measuring Financial Health
The debt-to-equity ratio compares a company's total debt to shareholder equity, revealing leverage and financial risk that equity traders must understand.

How Stocks Are Priced: Supply, Demand, and Value
Stock prices emerge from the interaction of buy and sell orders, anchored by estimates of fair value.