Skip to content

Valuation Ratios

Measures the market price of a stock relative to its fundamentals.

Price-Based Ratios

pe — Price / Earnings

pe(market_cap, net_income) -> float | None

Formula: Market Cap / Net Income

from fin_ratios import pe
pe(market_cap=3e12, net_income=1e11)  # 30.0

forward_pe — Forward P/E

forward_pe(market_cap, forward_earnings) -> float | None

Formula: Market Cap / Forward Earnings

peg — Price/Earnings to Growth

peg(pe_ratio, eps_growth_rate_pct) -> float | None

Formula: P/E Ratio / EPS Growth Rate (%). PEG < 1 is often considered undervalued.

pb — Price / Book

pb(market_cap, total_equity) -> float | None

Formula: Market Cap / Book Value of Equity

ps — Price / Sales

ps(market_cap, revenue) -> float | None

Formula: Market Cap / Revenue

p_fcf — Price / Free Cash Flow

p_fcf(market_cap, operating_cash_flow, capex) -> float | None

Formula: Market Cap / (OCF − CapEx)

Enterprise Value Ratios

enterprise_value

enterprise_value(market_cap, total_debt, cash, minority_interest=0, preferred_stock=0) -> float

Formula: Market Cap + Total Debt − Cash + Minority Interest + Preferred Stock

ev_ebitda

ev_ebitda(ev, ebitda) -> float | None

Formula: Enterprise Value / EBITDA. <8x is cheap; >20x is expensive.

ev_ebit

ev_ebit(ev, ebit) -> float | None

ev_revenue

ev_revenue(ev, revenue) -> float | None

ev_fcf

ev_fcf(ev, free_cash_flow) -> float | None

Intrinsic Value

graham_number

graham_number(eps, book_value_per_share) -> float | None

Formula: √(22.5 × EPS × Book Value per Share). Benjamin Graham's fair-value estimate for defensive investors.

graham_intrinsic_value

graham_intrinsic_value(eps, growth_rate_pct, risk_free_rate=0.044) -> float | None

Formula: EPS × (8.5 + 2g) × 4.4 / AAA_yield

tobin_q

tobin_q(market_cap, total_liabilities, total_assets) -> float | None

Formula: (Market Cap + Total Liabilities) / Total Assets. Q > 1 suggests the market values assets above replacement cost.

DCF Models

See Valuation DCF for dcf_2_stage, gordon_growth_model, and reverse_dcf.

TypeScript

All ratios use camelCase: pe, forwardPe, peg, pb, ps, pFcf, enterpriseValue, evEbitda, evEbit, evRevenue, evFcf, grahamNumber, grahamIntrinsicValue, tobinQ.

import { pe, pb, evEbitda, grahamNumber } from 'fin-ratios'

pe({ marketCap: 3e12, netIncome: 1e11 })        // 30.0
pb({ marketCap: 3e12, totalEquity: 3e11 })       // 10.0
evEbitda({ enterpriseValue: 2.5e12, ebitda: 1e11 }) // 25.0