How are stock metrics calculated, what do their values mean and what are their limits? Click on a metric to explore the formulas, worked examples and data Critivest uses. These metrics describe stocks; they are not investment advice or investment recommendations.
- P/E ratio (price-to-earnings ratio): The P/E ratio divides a company's market value by its earnings. Critivest calculates it from the market capitalization and the earnings of the last four quarters.
- P/B ratio (price-to-book ratio): The P/B ratio compares market value with balance sheet equity. Formulas and a worked example also explain tangible book value, which excludes intangible assets.
- P/S ratio (price-to-sales ratio): The price-to-sales ratio compares market value with annual revenue. See how P/S and price-to-cash-flow ratios are calculated, with examples and limits.
- Enterprise value: Enterprise value adds debt, minority interests and preferred stock to the market capitalization and subtracts cash and equivalents.
- Free cash flow: Free cash flow is the operating cash flow less capital expenditures. Related metrics include the free cash flow yield and the price-to-free-cash-flow ratio.
- Dividend yield: Dividend yield compares dividends paid with market value. Formulas and a worked example show how free cash flow covers the payments.
- Profit margins: Profit margins show how much revenue remains at different stages of the income statement. Formulas and examples explain net, gross, EBITDA and EBIT margins.
- Return on equity: Calculate and interpret return on equity (ROE) with a formula, a worked example, DuPont analysis and the limits of low or negative equity.
- Debt-to-equity ratio: The debt-to-equity ratio relates a company's liabilities to its equity. How Critivest calculates it from the latest balance sheet.
- Liquidity ratios: Calculate and interpret the current, quick and cash ratios with formulas, a worked example and a comparison with operating cash flow.
- Piotroski F-score: The Piotroski F-score awards 0 to 9 points for profitability, financing and efficiency from two annual reports. How Critivest calculates the nine points.
- Altman Z-score: The Altman Z-score combines ratios from the balance sheet and income statement into one value for the risk of financial distress. Plus the Z″-score.
The methodology explains how Critivest selects data and when a value is unavailable.
Last updated: November 4, 2026