The ratios are as appended below:
1. Ploughback or Reserves
2. Book value per share
Shareholders' funds
------------------------------------------------ = Book Value per share
Total quantity of equity shares issued
3. Earnings per share (EPS)
Profit Post Tax
------------------------------------------------ = EPS
Total quantity of equity shares issued
4. Price Earnings Ratio (P/E)
Price of the share
------------------------ = P/E
Earnings per share
5. Dividend yield
Dividend per share
----------------------------- x 100 = Yield
Market price of a share
6. Return of capital employed (ROCE)
Operating profit
----------------------------------------
Capital employed (net value + debt)
7. Return on net worth (RONW)
RONW is calculated as
Net Profit
-----------------
Net Worth
8. PEG ratio
P/E
----------------------------------
Expected growth rate of the EPS of the company
In general, a PEG lesser than 0.5 is a lucrative investment opportunity. However if the PEG exceeds 1.5, it is time to sell.